Mind the Gap: Why AI Literacy is the New Leadership Imperative

There’s a growing gap in executive leadership teams — and no, it’s not about hybrid work, generational divides, or even remote vs. return-to-office politics. It’s something quieter, but with far greater implications: AI literacy.

It’s an odd paradox. We’re in an era where artificial intelligence is reshaping every corner of business, from product development to customer service to strategic forecasting. Yet, walk into most boardrooms, and the conversation about AI still hovers somewhere between vague enthusiasm and quiet panic.

Fast Company recently spotlighted this disconnect in a piece aptly titled “The AI Gap in Executive Leadership Teams.” The core idea? While AI is sprinting ahead, many leaders are still trying to tie their digital shoelaces. The article doesn’t scold — but it does shine a bright light on a reality many executives would rather not face: being out of step with the very technology that will define their organization’s future.

And it’s not just about understanding ChatGPT or keeping up with the latest tools. It’s about grasping how AI shifts the way decisions are made, how risks are evaluated, and how value is created. AI literacy, in this sense, is not just knowing what AI is, but knowing how to lead in a world shaped by it.

The article introduces the concept of the “AI literacy ladder” — a journey that starts with confusion, climbs through competence, and (hopefully) reaches collective capability at the leadership level. That last part matters. Because while it’s tempting to outsource tech understanding to the CIO or hire a shiny new “Head of AI,” the reality is that competitive advantage increasingly depends on collective intelligence at the top.

What’s fascinating — and frankly, reassuring — is that the skills required to lead well in this environment aren’t all technical. Yes, there’s a learning curve. But the leaders who will thrive are those who combine curiosity with humility. Those who can ask smart questions, challenge assumptions, and build psychologically safe spaces for experimentation.

The call here isn’t to become data scientists overnight. It’s to close the strategic imagination gap. Because if leadership teams aren’t fluent in AI’s possibilities — and its limitations — then they can’t responsibly shape the vision, the guardrails, or the culture required to wield it well.

So what can executives do? Start small, but start now. Read widely. Ask your team how they’re already using AI in their work. Bring in voices that bridge the behavioral and the technical. And most importantly, foster a culture where it’s okay not to have all the answers — as long as you’re committed to asking better questions.

Because in the age of AI, leadership isn’t about having certainty. It’s about navigating complexity with clarity, courage, and just enough curiosity to keep climbing that ladder — together.