Week 2

Demystifying AI

Exploring the Background to AI - Understanding AI fundamentals, types, and generative AI capabilities

3 Chapters
2-4 Hours
100% Executive Focus
This Week's Insights from "Surviving and Thriving in the Age of AI"

Chapters 4-6

by Alan W. Brown

Week 2 draws from Chapters 4-6 of the book, focusing on AI fundamentals, types of AI systems, and the practical applications of generative AI technologies.

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Executive Summary

Critical Insights

  • AI encompasses multiple technologies, each with distinct capabilities and limitations
  • Generative AI represents a paradigm shift from traditional rule-based systems to learning-based approaches
  • Understanding AI types helps leaders make informed decisions about technology investments

Strategic Questions

  • What type of AI capabilities align best with your organization's strategic objectives?
  • How can you distinguish between AI hype and genuine business value in your industry?

Action Items

  • Map your current AI initiatives to specific AI types and capabilities this week
  • Conduct an AI capability assessment across your organization's key business processes

Time Investment

Reading 60-90 min
Reflection 15-30 min
Activities 15-30 min

Learning Objectives

1

AI Fundamentals

Understand the core concepts and principles underlying artificial intelligence, including machine learning, neural networks, and the different approaches to AI development.

2

Types of AI Systems

Distinguish between different types of AI systems, from narrow AI to general AI, and understand their respective capabilities, limitations, and practical applications.

3

Generative AI Capabilities

Explore the revolutionary potential of generative AI technologies and their practical applications in business contexts, understanding both opportunities and challenges.

Week 2 Video Summary

Watch this video summary to reinforce your understanding of Week 2 concepts: AI fundamentals, types of AI systems, and generative AI capabilities for strategic understanding.

Weekly Chapters

Chapter 4: Welcome to the World of AI

This chapter defines AI as the capability of a machine to imitate intelligent human behavior. It explains that the recent resurgence of AI is due to a massive increase in data, a dramatic rise in computing power, and significant advancements in machine learning algorithms. It distinguishes between two major forms of AI: predictive and generative.

Read Chapter 4

Chapter 5: The Past, Present, and Future of AI

This chapter provides a historical context for AI, noting its periods of enthusiasm and disillusionment, often called "AI winters". It explains that early AI efforts relied on symbolic logic and expert systems, which struggled with the complexity of the real world. The modern era is defined by machine learning and deep learning.

Read Chapter 5

Chapter 6: The Importance of Generative AI

This chapter focuses on generative AI, highlighting tools like ChatGPT, Gemini, and Claude. These tools can generate human-like responses and perform knowledge-generating tasks. The chapter notes that generative AI is a disruptive development because it creates new and original content.

Read Chapter 6

Knowledge Check Quiz

Test your understanding of Week 2 concepts with these interactive questions

1. What are some common misconceptions about AI that the course aims to demystify?

Common misconceptions include thinking AI is just automation, believing it will replace all human jobs, and assuming it's only for tech companies. The course clarifies that AI is a fundamental force reshaping organizations, requires human-AI collaboration, and demands strategic leadership understanding.

2. Briefly describe the difference between narrow AI (ANI) and general AI (AGI).

Narrow AI (ANI) is designed for specific tasks like image recognition or language translation, while General AI (AGI) would have human-like intelligence across all domains. Current AI systems are all narrow AI, focused on particular applications rather than general problem-solving.

3. What is the primary goal of the reading regarding AI understanding for leaders?

The reading aims to give leaders a clear, non-technical grasp of AI that translates into action. It emphasizes disciplined, value-driven choices over trend-chasing, so adoption is responsible and results-oriented.

4. What are the five main themes around which the reading provides perspectives for surviving and thriving in the age of AI?

Five themes structure the guidance: understanding the digital revolution's context; adopting a disciplined approach to transformation; developing leadership mindsets to navigate paradox; designing two-speed organizations; and building resilience for a VUCA environment. Together they offer a practical lens to survive and thrive in the age of AI.

5. Chapter 1 argues that executives and leaders often underestimate what aspect of digital transformation?

They often underestimate the magnitude and systemic nature of digital transformation. It is not a tooling update but a fundamental rethink of strategy, operating models, and culture.

6. The author emphasizes that recognizing the magnitude of digital changes is crucial for organizations to do what?

It enables organizations to survive and thrive by aligning strategy, investments, and governance with the true scale of change. Recognizing the scope prevents incrementalism and focuses effort on real value creation.

7. What is the "first key lesson" for leading digital transformation if we admit we are undergoing a revolution?

Lead it as a revolution, not a project. That means adopting new mental models, encouraging experimentation, and guiding with purpose instead of relying on legacy playbooks.

8. Explain the concept of a "two-speed" organization as described in Chapter 1.

A two-speed organization runs the core for reliability and efficiency while exploring new digital opportunities at startup speed. It deliberately balances operational stability with rapid learning cycles and innovation.

9. What are the four characteristics of VUCA (Volatility, Uncertainty, Ambiguity, Complexity) that define the digital economy according to Paradox 1?

VUCA highlights Volatility (fast, high-amplitude change), Uncertainty (limited predictability), Complexity (many interdependent variables), and Ambiguity (signals that are hard to interpret). Leading in VUCA calls for shorter feedback loops, adaptability, and crisp intent.

10. In Paradox 2: "keep control by owning less," what is suggested regarding physical assets and workforce capabilities?

It suggests retaining strategic control while owning fewer physical assets by leveraging platforms, partners, and ecosystems. Real control comes from standards, data, and capabilities—especially a skilled workforce—rather than sheer ownership.

Activities for Consideration

AI Tool Exploration

Research a generative AI tool (e.g., ChatGPT, Gemini, Midjourney) and experiment with its capabilities relevant to your work. Share your findings with a colleague.

Ethical Brainstorm

In a small group, discuss a potential application of generative AI within your industry. Identify and debate at least three ethical implications or risks associated with that application.

Current AI Landscape Mapping

Identify where AI is currently being used (or could be used) within your department or organization. Consider both established applications and potential new uses.

Further Reading & Viewing

"What is AI? Everything You Need to Know"

by IBM - Comprehensive overview of artificial intelligence fundamentals and applications.

Read Article

"A Brief History of AI: From Thinking Machines to Deep Learning"

by Towards Data Science - Historical context and evolution of AI technologies.

Read Article

"What is Generative AI? An Explainer"

by Google Cloud - Detailed explanation of generative AI capabilities and applications.

Read Article

TED Talk: AI Capabilities

"The Amazing AI Superpower for Your Everyday Life" - Practical examples of AI capabilities in daily applications.

Watch Video

YouTube: AI Fundamentals

"Understanding AI: A Complete Guide" - Comprehensive video series on AI capabilities and applications.

Watch Video

Course Progress

Ready for Week 3?

You've completed the AI fundamentals. Next week, we'll explore AI strategy development and implementation approaches.

Week 2 Complete
Ready for Week 3