Transitioning from AI literacy to building strategic AI capabilities

Gearing Up for AI Maturity

Transitioning from AI literacy to building strategic AI capabilities
  • Article
  • 5 minute read
  • 13 Feb 2025

A mere six months after the release of the EU AI Act, its first provisions are already in effect—including mandatory AI literacy requirements under Article 4. Yet, many organisations have overlooked this critical obligation.

AI literacy and capability building are not optional; they are legal necessities for all deployers and providers. Ensuring a workforce that understands and responsibly interacts with AI is now an integral part of regulatory compliance.

The most important in 30 seconds

Piktogramm Zeit
  • Compliance is a necessity, not a luxury: The EU AI Act mandates AI literacy requirements for all deployers and providers.
  • Building Real Capabilities: AI literacy alone is not enough. Organisations must develop specialised knowledge and practical skills in specific business areas where AI can create the most impact through:
    • Securing leadership support and aligning AI initiatives with business objectives to promote collaboration and agility.
    • Ensuring all employees are knowledgeable in AI through general literacy initiatives and specialised training addressing role-specific challenges and opportunities.
    • Competence hubs to consolidate skills and knowledge, fostering cross-functional teams, and promoting an agile workforce.
  • Ensuring Compliance and Auditability: Leveraging our audit experience, we understand the essential steps to achieving compliance with the EU AI Act:
    • Clear KPIs and detailed training logs to measure programme effectiveness and support continuous improvement.
    • Regular internal audits reinforce transparency, accountability, and adherence to legal requirements.

Your expert for questions

Hendrik Reese
Partner Responsible & Trustworthy AI at PwC Germany
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The importance of AI Literacy and capability building in today’s market

Beyond compliance, AI literacy delivers substantial business advantages and drives AI impact within organisations. It enhances operational efficiency, fosters innovation, and strengthens decision-making by equipping employees with essential knowledge about AI, its risks, and opportunities. This foundational understanding positions organisations to thrive in an AI-driven world. 

Key domains where AI literacy enablement is important:

  • Understanding AI concepts:
    
AI literacy refers to the company-wide ability to understand, interpret, and effectively interact with AI technologies. AI literacy is not limited to technical expertise; it also includes critical thinking, ethical awareness, and the ability to apply AI responsibly within various contexts. It encompasses knowledge of how AI systems work, their benefits, risks, and limitations, as well as legal considerations associated with their use.
  • AI Specific Opportunities & Risks:
    Staying ahead in the AI-driven market demands continuous learning and adaptation. AI literacy enables employees to optimise workflows by automating tasks and analysing data for strategic insights. It also fosters innovation, empowering teams to develop AI-driven solutions tailored to evolving market demands.

    However, AI systems come with inherent risks, such as bias, lack of transparency, and unintended consequences, which can lead to legal, financial, and reputational harm. With regulations like the EU AI Act mandating ethical AI usage, organisations must proactively build AI literacy to navigate compliance requirements and enable their staff to understand and mitigate AI-specific risks responsibly.
  • Responsible Development and Use:
    Ensuring responsible AI deployment begins with integrating human oversight at every stage, from initial development to real-world application. By embedding human-centric design principles and ethical considerations into AI development, organisations can create systems that allow for effective oversight during inference.

    This proactive approach is crucial in high-stakes areas such as medical diagnoses or judicial decisions, where human intervention remains essential. AI literacy empowers employees not only to critically evaluate AI-generated recommendations but also to recognise and mitigate biases, ensuring that AI is used safely, ethically, and transparently.

However, AI literacy alone is not enough.

Like a high-performance car left in the garage, unused AI skills yield no real value – building real capabilities in AI is crucial.

This involves developing specialised knowledge and practical skills in specific business areas where AI can create the most impact. Ultimately, these skills must be actively applied, ensuring that AI literacy translates into tangible, responsible, and effective AI use across the organisation.

Unleashing AI Literacy: Essential Steps for Future-Proofing Your Business

From our recent experience building and auditing AI governance across various companies, we have identified key success factors and essential strategies for successfully embedding AI literacy into the organisational fabric.

To successfully integrate AI literacy into the organisational fabric, it is crucial for companies to align their AI literacy initiatives with their broader AI strategy. This alignment ensures that AI literacy is not treated as a standalone effort but as a vital component of comprehensive capability-building programmes. These should encompass AI governance addressing various aspects of AI competency, including technical knowledge, cultural change, enablement, compliance, and risk management.

To maximise the capability-building impact, organisations must first identify the business areas where AI can drive the most value. Conducting a thorough assessment can help identify departments and processes where AI can optimise operations, enhance decision-making, and boost efficiency. Targeting training efforts towards these high-impact areas ensures that employees develop the necessary skills to effectively leverage AI, aligning their expertise with the strategic goals of the organisation.

A critical component of successfully integrating AI literacy is leadership commitment. Active support and engagement from leadership are vital for the success of AI literacy programmes, as they create the foundation upon which these initiatives can thrive. Leadership plays a pivotal role in setting the tone and fostering an AI culture that values continuous learning to manage change effectively. Their involvement is not just about endorsing AI initiatives but also about actively driving them forward, ensuring that every level of the organisation understands the importance of AI literacy and is equipped to contribute to its advancement.

Leaders set the strategic direction, articulate a clear vision for AI literacy, and align it with broader organisational goals. They are responsible for resource allocation, making it possible to develop and sustain comprehensive training initiatives.

Once key AI impact areas are identified and leadership commitment is set, organisations should adopt a two-tiered training approach that includes both specialised and general education.

General AI literacy initiatives ensure that all employees, regardless of role, develop a foundational understanding of AI’s relevance. These initiatives foster a culture of AI awareness, encourage cross-functional collaboration, and prepare the workforce for AI-driven transformation.

Specialised training is designed to address the unique challenges and opportunities associated with each role, ensuring that employees are not only proficient in their primary functions but also adept at leveraging AI to enhance their performance.

Specialized trainings along all business lines

  • C-Level Executives need a strategic understanding of AI’s role in business transformation, ensuring they can guide AI adoption at an organisational level.
  • IT Professionals require deep technical expertise to handle AI deployment and maintenance.
  • Line Workers benefit from hands-on training that integrates AI into daily tasks, enhancing productivity and efficiency.

Exemplary targeted trainings

Data Scientists and Analysts benefit from intensive training in machine learning algorithms and data manipulation techniques, allowing them to harness AI for predictive analytics and business insights.

Finance Departments might adopt AI-driven financial modeling and risk assessment tools to streamline operations and improve financial forecasting accuracy.

The synergy between targeted and general training enhances workforce effectiveness by equipping employees with specific skills for immediate needs and a broad understanding of AI and its adaptability, thus supporting both immediate business objectives and long-term strategic goals.

Flexible training formats, combining online modules and immersive on-site workshops, ensure employees can incorporate learning into their schedules while developing the expertise required for innovation. This blend of convenience and hands-on experience is crucial for maximising AI capabilities, thus propelling business growth and innovation.

AI capabilities only create real value when applied effectively across the organisation. If knowledge and skills remain siloed, their impact is severely limited. Competence hubs help break down these barriers by serving as central repositories of AI expertise, ensuring that specialised knowledge is accessible and strategically deployed where it is needed most. These hubs align skilled personnel and resources with business needs, fostering cross-functional collaboration and enabling teams to translate AI knowledge into practical applications. By actively integrating AI expertise across departments, organisations create an agile, AI-enabled workforce capable of driving AI-driven initiatives.

Beyond resource allocation, competence hubs drive innovation by connecting diverse skill sets and optimising AI applications across business functions. Their success relies not just on technical expertise but also on strong community-building. A well-established AI community – comprising AI champions, business leaders, and practitioners – ensures that knowledge flows beyond the hub, fostering organisation-wide adoption and ownership.

By embedding community-building into the AI Target Operating Model (TOM), competence hubs facilitate a hub-and-spoke structure, where knowledge flows seamlessly between the central hub and business units. This ensures that AI expertise is scalable, continuously refined through real-world feedback, and deeply embedded into business operations. The result is an organisation-wide AI culture, where innovation thrives, AI literacy grows, and AI solutions deliver tangible, high-impact business value.

Infografik: Visualization of the competence hub in capability and skill building

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Ensuring Compliance and Auditability

Leveraging our audit experience, we understand the essential steps to achieving compliance with the EU AI Act while ensuring that AI literacy initiatives are integrated in a sustainable and scalable manner. Our approach goes beyond mere compliance, embedding AI literacy initiatives into long-term strategies that make AI literacy both practical and impactful.

KPI Tracking and Logging of Training

To evaluate whether an organisation is compliant with the requirements of the AI Act, the definition of clear Key Performance Indicators (KPIs) and the maintenance of comprehensive training records are indispensable. This includes setting measurable targets and developing a dashboard that tracks training progress over the past year, highlighting achievements and identifying areas for improvement. Training records include the detailed logging of AI training activities, content, formats, timelines, trainers, and participants. Systematic monitoring of completion rates enables companies to demonstrate compliance, foster a culture of continuous learning, and refine their AI capability-building strategies based on performance data.

To stay compliant with evolving regulations and standards, regular internal audits and reviews of these AI literacy programmes help ensure transparency and accountability.

By adopting these practices, organisations can demonstrate their commitment to responsible AI use and adherence to legal requirements, positioning themselves as leaders in the field of AI ethics and governance.

From Compliance to Competitive Advantage: The Path to AI Maturity

Achieving AI maturity requires more than just compliance – it demands continuous investment in training and skill-building. Organisations that take a structured, strategic approach to AI literacy will not only meet regulatory requirements but also unlock AI’s full potential.

Establishing competence hubs and embedding AI literacy into the AI Target Operating Model (TOM) ensures that expertise is systematically developed, shared, and applied across the organisation. By focusing on key stakeholder groups and high-impact areas, businesses can mitigate risks, drive innovation, and build a scalable AI strategy.

The key is to act now: implement targeted programmes, make AI literacy auditable, and ensure that knowledge translates into practice. Only then can organisations truly harness AI as a competitive advantage.

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Hendrik Reese

Hendrik Reese

Partner, Responsible AI Lead, PwC Germany

Dr. Sebastian Becker

Dr. Sebastian Becker

Senior Manager, PwC Germany

Tel: +49 151 65049586

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