AI has moved from side project to business priority, yet many executives still keep their distance. Here’s why AI literacy is now essential for leadership, shaping strategy, culture, and outcomes.

 

SwissCognitive Guest Blogger: Jair Ribeiro – “AI Literacy is the New Leadership Skill: Why C-Suites Must Rethink Their Role”


 

SwissCognitive_Logo_RGBArtificial Intelligence has moved from the lab to the boardroom, and yet many leaders still treat it as someone else’s domain. A tool for the data team. An experiment for the innovation lab. A project to be “followed up” rather than led.

But here’s the problem: AI is no longer optional. It’s reshaping industries, customer expectations, regulatory frameworks, and even what we mean by “work.” When leaders stay at a distance, the risk isn’t just missed opportunities. It’s building a business that’s increasingly misaligned with how the world works.

This is something I’ve observed firsthand, leading AI transformation initiatives across commercial operations. If leaders remain passive, decisions are pushed downward, and the disconnect is evident in timelines, in trust, and in outcomes. The future isn’t waiting for leadership to catch up. That’s why I believe executives don’t need to code, but they must get close enough to understand what’s shaping their strategy.

A 2024 LinkedIn survey of nearly 2,000 global C-suite leaders revealed that 88% of executives now list accelerating AI adoption as a top priority. and notably, AI literacy has emerged as one of the fastest-growing in-demand competencies, with triple the number of C-suite members adding AI skills, like prompt engineering and generative AI tools—to their profiles compared to two years ago (LinkedIn, 2024).

What does AI literacy mean for leaders?

In boardrooms around the world, leaders are beginning to ask themselves a crucial question: Do I understand enough about AI to lead effectively in an AI-driven future? The shift toward AI-literate leadership isn’t about turning every executive into a technical expert—it’s about equipping them to steer transformation responsibly, confidently, and collaboratively. That begins with clarity on what AI literacy actually means.


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It’s not about mastering machine learning theory. It’s about being able to:

  • Ask the right questions: What problem are we solving? What kind of data is this based on? Who does this impact?
  • Spot the limitations: Where might this model fail? How are we measuring value? Are we testing for unintended outcomes?
  • Lead with responsibility: Is this solution fair? Transparent? Aligned with our values?

In short, AI literacy means actively participating in conversations and decisions that involve AI. From my perspective, it’s also about showing up with the curiosity and humility to admit what we don’t know, while having the courage to ask anyway.

Why is this shift urgent?

Because AI isn’t an “IT project” only anymore. It’s in the hands of employees, customers, and regulators. At Volvo Trucks, we’ve seen how AI helps anticipate service needs and structure more intelligent contracts. These improvements weren’t magic—they were the result of persistent leadership involvement and trust in the teams closest to the work.

Today, companies with AI-literate leadership consistently outperform others in implementing AI solutions. The World Economic Forum echoes this sentiment with its AI C-Suite Toolkit, emphasising that leaders must be informed, not just advised.

When leadership understands AI:

  • Change accelerates. Teams feel empowered to experiment safely.
  • Risk is managed proactively, not reactively.
  • Strategy becomes sharper because it’s informed by what AI can actually do (and where it still can’t).

This is not about becoming tech evangelists. It’s about becoming accountable for the choices being made in our name.

The expert consensus: AI literacy is a leadership challenge

AI adoption is fundamentally a leadership challenge, which aligns with my experience, where projects thrive not because the technology is perfect, but because leadership creates space for exploration, failure, and learning.

We need leaders who normalize AI discussions in commercial reviews. Who asks why a report didn’t include algorithmic insight? Who challenge their teams to think beyond dashboards and KPIs.

What can leaders do now?

Bringing AI into the heart of an organisation doesn’t start with a board resolution; it begins with small, intentional shifts in how leaders present themselves. These are not tech strategies; they are leadership behaviours that shape culture. If we want AI to support genuine transformation, we must lead by example, demonstrating that curiosity, learning, and responsibility start at the top.

  1. Start small, but start personally. Curiosity is contagious. When leaders engage, teams follow.
  2. Model active learning. Use AI tools, share what you’re learning, and normalise not having all the answers.
  3. Make AI part of business thinking. Involving it in every aspect, including customer service, pricing, and sustainability.
  4. Democratize literacy. Invest in raising the AI floor, not just the ceiling.
  5. Tie AI to a purpose. People don’t rally around tech, they rally around outcomes. Connect AI to the mission.

We’re seeing this in action. IKEA’s upskilling program for over 8,000 employees shows what’s possible when leadership doesn’t delegate AI understanding to others. At Volvo, our best progress came when our leadership culture made space for questions, not just answers.

AI isn’t another passing trend. It’s shaping how our businesses think, decide, and grow. And leadership either adapts or abdicates.

Leaders don’t need to master the math behind AI. However, they do need to master a mindset that is open, informed, and intentional. The leaders who do will shape organisations that thrive, not just survive, in the AI era.