Introduction to AI for Business Leaders and Employees

Imagine having an army of 10,000 super-smart workers willing to do your bidding 24/7 for free. What would you have them do?

This provocative question posed by Nigel Botterill at the Entrepreneurs Circle conference perfectly encapsulates the potential of AI in today's business world. AI, which we all know stands for artificial intelligence, but I like to say it stands for Assistants and Insights, which is the mindset we all should have.

AI offers every employee the opportunity to have the equivalent of small group of highly talented and brilliant personal assistants ready to handle just about any task, making their job easier and more efficient, often at a minimal cost, if any cost at all. 

I'm sure many of you are already familiar with ChatGPT or Copilot and may have even experimented with them. However, this is just the tip of the iceberg.

AI is poised to revolutionize the way we work, offering unprecedented levels of efficiency, innovation, and productivity. From automating mundane tasks to providing deep insights that drive strategic decision-making, AI is set to transform businesses across industries in ways we are only beginning to understand.

But with great power comes great responsibility. AI's impact on knowledge workers will be profound, dramatically reshaping the workforce as we know it. This transformation will present both incredible opportunities and significant challenges, fundamentally altering job roles and workflows. It's crucial to not only understand how AI works and the key terminology involved but also to grasp the steps needed to create a culture of AI within your organization.

This article will serve as your primer, providing a comprehensive introduction to AI and preparing you for the future of work. The stakes are high, and the future of your career and your business depends on how well you adapt to this new reality.

Table of Contents: 

1. What is AI and How Does It Work?
2. Key AI Terminology & Fundamentals
3. AI’s Impact on Knowledge Workers
4. 6 Steps to Creating a Culture of AI
5. Are You Ready to Bring AI to Your Organization?

What is AI and How Does It Work?

Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think and learn like humans.

At its core, AI involves creating systems that can perform tasks that would typically require human intelligence, such as understanding natural language, recognizing patterns, solving problems, and making decisions.

The field of AI encompasses various subfields, including machine learning, which allows systems to learn from data and improve over time without being explicitly programmed.

One of the most groundbreaking advancements in AI has been the development of large language models (or LLMs), like ChatGPT. These models are trained on vast amounts of text data, enabling them to understand and generate human-like text.

Over the past few years, AI research has made significant strides, culminating in what many refer to as "the ChatGPT moment." This moment marked a turning point when AI's capabilities became more apparent and accessible to the general public. ChatGPT, developed by OpenAI, demonstrated the potential of AI to engage in coherent and meaningful conversations, making it clear that AI was no longer a futuristic concept but a present reality.

The progression to this point has been fueled by advances in computing power, the availability of large datasets, and innovative algorithms. Initially, AI systems were limited to specific tasks and required extensive programming for each new function. However, with the advent of machine learning and deep learning, AI systems can now learn from data, recognize patterns, and make predictions with remarkable accuracy. These advancements have made it possible for AI to tackle complex problems and provide valuable insights across various domains, from healthcare and finance to customer service and marketing.

Looking ahead, AI is expected to continue evolving at a rapid pace. Future advancements will likely include more sophisticated and capable AI models that can understand and generate text, images, and even video content with greater precision. These developments will enable AI to assist in more complex and nuanced tasks, further integrating into our daily lives and work environments. As we move forward, it's essential to stay informed about AI's capabilities and potential, as well as the ethical considerations and challenges that come with its widespread adoption.

Understanding what AI is and how it works is the first step in leveraging its potential. By grasping the basics of AI and its recent advancements, you can better appreciate its impact on your work and the broader business landscape. This knowledge will empower you to make informed decisions about how to incorporate AI into your daily tasks and long-term strategies, positioning yourself and your organization for success in the AI-driven future.

Key AI Terminology & Fundamentals

Before we dive deeper, let’s get familiar with some key AI terms. Don’t worry, we’ll keep it simple and relatable. 

Prompting

Prompting is what you do when you request an AI to do something (like when you start a conversation with ChatGPT), and it is crucial in AI interactions. Think of it like giving instructions to an assistant: if you provide poor instructions, you can expect poor output. The quality of the prompts you give to an AI model directly affects the quality of the responses you receive.

Clear, specific, and well-structured prompts lead to more accurate and useful outputs. As AI becomes more integrated into daily tasks, mastering the art of prompting will be essential for maximizing the effectiveness and efficiency of AI tools in your workflow.

Usage Will Train the Model

The more you use AI platforms, the smarter they become. Interaction with these platforms helps train the models, improving their accuracy and usefulness. However, it's important to be mindful of the information you share. 

While some platforms ensure privacy, others may use the data you provide to train their models, which can then be used to answer questions from other users. This can pose significant security risks, such as exposing confidential client information, company financials, intellectual property, or employee data. It's crucial to avoid sharing sensitive information and to be aware of the potential implications of perpetuating biases and discrimination within the hiring process.

Getting your Brand Recommended by AI

Getting your brand recommended by AI is akin to optimizing for search engines. The same principles apply: you must invest in a robust content marketing strategy like Endless Customers (an updated and evolved version of They Ask, You Answer). 

This involves publishing and optimizing high-quality blog articles, YouTube videos, and podcasts. Implementing effective SEO practices and using schema markup are essential to ensure your content is discoverable. Regularly publishing content enhances your brand's visibility and relevance. Large language models like ChatGPT learn from readily available content on the internet, so the more valuable and optimized content you produce, the higher the chances of your brand being recommended by AI.

Multimodal

Multimodal refers to AI systems that can process and integrate multiple types of data simultaneously. Unlike traditional AI models, which typically handle a single type of data such as text, image, or speech, multimodal AI models can understand and generate outputs from various data sources, including text, images, audio, video, and even code. This capability allows these models to provide richer, more comprehensive insights and make more informed decisions.

ChatGPT is multimodal, meaning it can process and generate responses using multiple types of data, including text, code, images, files, and videos. For example, ChatGPT-4o can not only understand and generate natural language text but also analyze and generate code, create, interpret and describe images, and even process video content. This capability allows it to provide comprehensive assistance across various tasks: it can debug code, provide visual content descriptions, extract information from Office or Google files, and offer insights from video analysis.

AI Agents

Currently, AI operates mainly by prompting and providing responses based on user input. However, the future of AI lies in the development of AI agents—autonomous entities capable of completing tasks on behalf of users without constant human intervention. These agents can learn, adapt, and make decisions based on the data they process, potentially transforming how we interact with technology.

Imagine an AI agent tasked with booking an executive retreat: it could autonomously search for suitable venues, negotiate prices, arrange transportation, and manage schedules, all while considering the specific preferences and requirements of the executives.

While the widespread use of AI agents is still on the horizon, their potential to automate complex processes, enhance productivity, and provide personalized assistance across various domains is immense.

Although some companies are already using AI agents, it is not yet widespread. However, we can expect to see more AI agent examples and stories emerging in 2025. Understanding AI agents and preparing for their integration into business operations will be crucial for staying ahead in an AI-driven future.

Hallucinations

Hallucinations in AI occur when models generate information that seems plausible and convincing but is factually incorrect. Unfortunately, this can happen, as AI, like humans, can sometimes appear very confident while being wrong. These errors underscore the need for careful evaluation and validation of AI outputs.

Recognizing that AI is not infallible and being vigilant about verifying the information it provides is essential. To mitigate the risk of hallucinations, always cross-check AI-generated content with reliable sources and use AI tools as aids rather than sole authorities in decision-making processes. Ensuring accuracy and reliability in AI-driven insights is critical to maintaining trust and effectiveness in AI applications.

AI’s Impact on Knowledge Workers

AI is poised to revolutionize the workplace, offering knowledge workers the tools to do their jobs better and faster. From automating repetitive tasks to providing deep insights through data analysis, AI can significantly enhance productivity and innovation. Imagine having more time to focus on strategic, creative work because AI is able to handle the mundane. 

As Dharmesh Shah from HubSpot aptly put it, "AI will take your job. But it will give you a better, more creative one."

However, this transformation comes with significant implications. According to various studies, AI and automation could displace millions of jobs worldwide. While some roles will be eliminated, new opportunities will emerge that require different skill sets. The key to thriving in this AI-driven future is becoming an "AI-enabled" version of yourself. This means continuously learning and adapting to new technologies, and integrating AI into your daily work processes.

The reality is that AI is not just a trend; it’s a paradigm shift. Those who embrace it will find themselves at the forefront of innovation, while those who ignore it risk falling behind. To ensure your relevance and success in this evolving landscape, it's crucial to understand AI’s capabilities and actively seek ways to leverage them in your work. This proactive approach will not only safeguard your career but also position you to take full advantage of the exciting possibilities AI offers.

The stakes are high. Embracing AI is not optional but a necessity. The future belongs to those who can work alongside AI, using it to augment their skills and amplify their impact. Prepare yourself now to be a part of this transformative wave, and become the AI-enabled professional the future demands.

6 Steps to Creating a Culture of AI

Creating a culture of AI within an organization cannot be achieved through a top-down approach alone. It's not enough for leaders to attend an AI conference, return with a list of ideas and tools, and mandate their implementation. Such an approach is likely to fail. 

Instead, fostering a culture of AI requires a bottom-up strategy where employees are empowered to explore, experiment, and determine the most effective AI tools and practices for their work. 

Leaders must clearly articulate the "why" behind the AI initiative, inspiring and motivating their teams to embrace AI's potential. Meanwhile, it's up to the employees to figure out the "how" and identify the right tools and methods to integrate AI into their daily workflows. 

By cultivating an environment of collaboration, curiosity, and continuous learning, organizations can successfully embed AI into their culture and drive meaningful transformation.

Here are 6 steps to creating a culture of AI experimentation: 

Step 1: Start with education

The first step in creating a culture of AI is to start with education. This article is a great tool to begin that journey.

We also recommend spending a day with your team, having an honest and open conversation about the future of AI and how it can and will impact the business. This dialogue helps to demystify AI and sets a foundation of understanding and enthusiasm.

Additionally, watching demo videos of readily available AI software can be incredibly inspiring. These demonstrations not only showcase potential solutions for your business but also highlight the impressive capabilities of AI, sparking ideas and encouraging innovative thinking within your team.

Step 2: Set Clear Expectations

It's crucial to address fears head-on, particularly the common concern: "Will AI take my job?"

Acknowledge these worries and provide reassurance that while AI will change the nature of many roles, it is not intended to replace employees but to enhance their capabilities. Clearly communicate that AI is a company priority, and that the organization is fully committed to integrating AI into everyday operations.

Emphasize that it is now part of everyone's job to experiment with and use AI in their daily work, and that this collective effort will drive the company forward.

By setting clear expectations and fostering a supportive environment, you can help alleviate concerns and encourage a proactive, innovative approach to AI adoption.

Step 3: Provide Guidelines

Experimentation is the goal, but only if it’s done safely and responsibly. Otherwise, you have chaos and risk.

There are a lot of great examples of AI guidelines out there. The city of Boston, for one, published a pretty comprehensive guide to using AI.

At IMPACT, we created what we call the "SAFETY" guidelines to keep us and our clients safe. We rolled these out to our team and made sure they were crystal clear. 

We say that any AI experimentation needs to be:

• Secure: We must keep our (and our clients’) data secure. Check the data security levels of the tools you use and act accordingly. If you’re not sure, don’t risk it. 
• Assistive, not autonomous: AI is a helper, not a team member. There must be a human in the loop at all times. We are accountable for what AI does, and our oversight is vital.
• Fact-checked: We would never blindly publish anything AI produces. We check everything.  
• Experimental: AI can help us improve our work quality and increase our output. We need to experiment to see how.
• Transparent: Our use of AI is not a secret. We should be transparent with coworkers, supervisors, clients, and our audience. We cite sources. 
• Remember, Your expertise matters: AI can enhance your creativity. AI can speed up your repetitive tasks. None of this is possible without your expertise. Let AI multiply your impact for the good of the organization.

Guidelines are there to keep them (and your company) safe. If they’re done right, guidelines don’t restrict experimentation — they make it easier.  

These ones are broad enough to cover big concerns. Just like with everything else, encourage your people to use their best judgment. 

Step 4: Identify an 'AI Champion'

Identify an internal AI champion who can help teach, support, and encourage other employees. This should be a tech-savvy early adopter who’s optimistic, well-liked, and a good teacher. 

You could make this person an official champion, with some formal expectations tied to the role, or it could be more of an informal thing. But you’ll want this champion to have a direct line to the leadership team so that as they build momentum and buy-in they can keep company leaders in the loop. 

Step 5: Provide a process for experimentation and measuring ROI

Experimentation can be haphazard. Your team members may want a framework to help them stay on track. At IMPACT, we recommend a process that’s based on the scientific method. The same one you learned in school. 

It goes like this:

1. Describe the problem or opportunity
2. Create a hypothesis 
3. Determine the metrics for success
4. Plan an experiment to test your hypothesis
5. Identify the potential impact 
6. Run the experiment
7. Document the results
8. Share your findings 

We ask our team members to document the AI experiments they’re undertaking. With a formalized process, we can keep track and share information between teams. 

All along, you’ll be tracking the potential ROI of these experiments, both on the micro level (experiment by experiment) and on the macro level (for your whole organization). Some AI tools, like chatbots, can be expensive. Others are cheap. Working them into your processes can yield a huge savings — but only if you keep track.

Remember, not all experiments will be successful. But you will learn a lot from any failure. 

Step 6: Reward Employees & Celebrate Success

Recognize AI milestones and provide tangible rewards for successful teams. Highlight AI success as integral to company achievements. Everyone loves a good celebration, and recognizing efforts keeps the momentum going.

If you want something to become a part of your culture, reward it. If you want a success to be duplicated, celebrate it.

There are a number of ways you can do this, from a simple shout-out at an all-hands meeting to an actual cash prize or bonus. At IMPACT, we do both. We share our AI wins at our monthly meetings so each experiment can inspire others. 

At the same time, I’ve put in place a $5,000 per quarter prize to be given out at my discretion. It may all go to one person. It may be split between several — or it may not be awarded in a given quarter. The idea of a bonus spurs innovation, and we’ve seen a big uptick in experiments since the prize was announced.

Leading your company into the future

Getting your team to embrace something new, like AI, is hard, and sometimes you need help. As IMPACT’s business partner, Marcus Sheridan always says, “you can be a prophet to the world, but no one will listen to you in your own hometown.”

In other words, changing an organization from the inside is no easy task. Even if you’re the CEO, creating a culture change out of the blue can be daunting. 

You may need some guidance.

We’ve led AI workshops at dozens of businesses that build momentum, create buy-in, and change the culture. We can work hand in hand with your team to set the right tone so your people feel excited, not on-edge. 

If you’re among those 80% of businesses still waiting on the sidelines, now’s the time to step forward.

With the right assistance, you can create a culture of innovation that will keep you ahead of the curve for years to come.