Essential Work Samples to Evaluate AI Literacy in Leadership Teams

In today's rapidly evolving business landscape, AI literacy has become a critical competency for leadership teams. As organizations increasingly integrate artificial intelligence into their operations, leaders must possess the knowledge and skills to make informed decisions about AI implementation, understand its capabilities and limitations, and effectively communicate AI strategies across their organizations. Without proper AI literacy, leadership teams risk making costly strategic errors, missing valuable opportunities, or implementing AI solutions that create ethical or operational problems.

Evaluating AI literacy in leadership candidates or existing team members requires more than theoretical knowledge assessment. Practical work samples and role plays provide a window into how leaders approach AI-related challenges in realistic scenarios. These exercises reveal a leader's ability to think critically about AI applications, evaluate potential risks and benefits, and translate technical concepts into business value.

The following work samples are designed to assess various dimensions of AI literacy in leadership contexts. They evaluate not just technical understanding, but also strategic thinking, ethical awareness, and communication skills related to AI. By observing how candidates navigate these scenarios, organizations can identify leaders who will guide their AI initiatives with both vision and pragmatism.

These exercises are particularly valuable because they simulate the actual challenges leadership teams face when working with AI. Rather than testing abstract knowledge, they require candidates to demonstrate how they would apply AI literacy in practical situations. This approach helps organizations identify leaders who can bridge the gap between technical possibilities and business realities in the AI era.

Activity #1: AI Use Case Identification and Prioritization

This exercise evaluates a leader's ability to identify valuable AI applications within a business context and prioritize them based on strategic impact, feasibility, and resource requirements. Effective AI-literate leaders can distinguish between high-value AI opportunities and those with limited returns, allowing organizations to focus their AI investments where they matter most.

Directions for the Company:

• Prepare a brief (1-2 page) description of a fictional or anonymized company, including its industry, size, current challenges, strategic goals, and existing technology infrastructure.
• Include 3-4 potential areas where AI might be applied (e.g., customer service, product development, operations, marketing).
• Provide basic information about available resources, including budget constraints, technical talent, and data assets.
• Allow 45-60 minutes for this exercise.
• Have a technical leader and a business leader present to evaluate responses.

Directions for the Candidate:

• Review the company information provided.
• Identify 3-5 specific AI use cases that could benefit the organization.
• For each use case:
• Describe the business problem it addresses
• Explain what type of AI technology would be appropriate (e.g., natural language processing, computer vision, predictive analytics)
• Outline expected benefits and potential challenges
• Estimate resource requirements (time, talent, data, budget)
• Prioritize the use cases based on business impact, feasibility, and resource requirements.
• Prepare a brief presentation (5-7 minutes) explaining your recommendations and rationale.

Feedback Mechanism:

• After the presentation, evaluators should provide feedback on one strength (e.g., "Your prioritization framework effectively balanced short-term wins with long-term strategic value") and one area for improvement (e.g., "Consider addressing data privacy implications more explicitly").
• Give the candidate 5 minutes to respond to the improvement feedback and adjust their recommendations accordingly.
• Observe how well they incorporate the feedback and whether they demonstrate flexibility in their thinking.

Activity #2: AI Ethics and Risk Assessment

This exercise assesses a leader's ability to identify and address ethical considerations and potential risks associated with AI implementation. AI-literate leaders must understand not just the technical capabilities of AI but also its societal implications, potential biases, and governance requirements.

Directions for the Company:

• Create a detailed scenario describing an AI implementation with potential ethical implications. For example:
• A healthcare organization implementing an AI system to prioritize patient care
• A financial institution using AI for loan approval decisions
• A retail company deploying facial recognition for personalized shopping experiences
• A manufacturing company automating jobs with AI systems
• Include specific details about the data being used, the decisions being automated, and the stakeholders affected.
• Prepare a list of evaluation criteria focusing on ethical awareness, risk identification, and mitigation strategies.
• Allow 30-45 minutes for this exercise.

Directions for the Candidate:

• Review the AI implementation scenario.
• Identify at least 5 potential ethical concerns or risks associated with the implementation (e.g., bias, privacy, transparency, job displacement).
• For each concern:
• Explain why it matters in this specific context
• Describe how it might manifest
• Suggest specific mitigation strategies
• Outline a governance framework that would help ensure responsible use of this AI system.
• Prepare a 1-page summary of your assessment and recommendations.

Feedback Mechanism:

• Provide feedback on one ethical consideration the candidate addressed well and one they overlooked or could have explored more deeply.
• Ask the candidate to spend 10 minutes developing a more comprehensive approach to the area identified for improvement.
• Evaluate their ability to think critically about complex ethical implications and develop practical governance solutions.

Activity #3: AI Tool Evaluation Role Play

This role play simulates a scenario where the leadership team must evaluate an AI vendor's offering and make an informed decision about its adoption. It tests the candidate's ability to ask insightful questions, identify potential implementation challenges, and assess the true value proposition of an AI solution.

Directions for the Company:

• Select an employee to play the role of an AI vendor sales representative.
• Prepare a brief on a fictional AI product with some impressive capabilities but also limitations and potential implementation challenges. Include:
• Product overview and claimed benefits
• Technical specifications (at a high level)
• Pricing structure
• Case studies or testimonials
• Some deliberately vague claims about capabilities
• Brief the "vendor" on how to present the product enthusiastically but also how to respond to probing questions.
• Allow 20-30 minutes for the role play.

Directions for the Candidate:

• You are a leader evaluating an AI solution for potential adoption in your organization.
• The vendor will present their solution for 5-7 minutes.
• Your task is to:
• Ask probing questions to understand the true capabilities and limitations of the solution
• Determine what data and infrastructure would be required for implementation
• Assess the total cost of ownership beyond the stated price
• Evaluate how the solution would integrate with existing systems and processes
• Identify potential risks or challenges
• After the vendor presentation and your questions, prepare a brief (3-5 minute) recommendation on whether to proceed with this solution, request more information, or decline.

Feedback Mechanism:

• Provide feedback on one aspect of the candidate's questioning approach that was effective and one area where they could have probed more deeply.
• Give the candidate 5 minutes to formulate 3-5 additional questions they would ask the vendor based on the feedback.
• Evaluate their ability to translate feedback into improved inquiry and critical assessment.

Activity #4: AI Communication Challenge

This exercise tests a leader's ability to translate complex AI concepts into clear, accessible language for different stakeholders. Effective AI-literate leaders must bridge the gap between technical possibilities and business understanding, ensuring that AI initiatives are properly understood and supported across the organization.

Directions for the Company:

• Prepare a technical description of an AI system or concept that would be relevant to your organization (e.g., a recommendation engine, natural language processing system, or predictive maintenance algorithm).
• Create profiles for three different stakeholders who would need to understand this AI system:
• A board member with limited technical background
• A department head whose team will use the AI system
• A frontline employee whose work will be affected by the AI
• Provide the candidate with the technical description and stakeholder profiles.
• Allow 45 minutes for preparation and 15 minutes for presentation.

Directions for the Candidate:

• Review the technical description of the AI system or concept.
• Prepare three different explanations of the same AI system tailored to each stakeholder:
• For the board member: Focus on strategic value, ROI, and competitive advantage (2-3 minutes)
• For the department head: Emphasize implementation requirements, change management, and performance metrics (2-3 minutes)
• For the frontline employee: Address how it will affect their daily work, what skills they'll need, and how it will benefit them (2-3 minutes)
• Deliver each explanation as if you were speaking directly to that stakeholder.
• Use appropriate visual aids, analogies, or examples to make complex concepts accessible.

Feedback Mechanism:

• After the presentations, provide feedback on one communication strength (e.g., effective use of analogies) and one area for improvement (e.g., avoiding technical jargon with the board member).
• Ask the candidate to revise one of their explanations based on the feedback and deliver it again.
• Evaluate their ability to adapt their communication style and translate technical concepts into language that resonates with different audiences.

Frequently Asked Questions

How long should we allocate for these AI literacy assessment activities?

Each activity requires different time allocations. Plan for 45-60 minutes for the Use Case Identification, 30-45 minutes for the Ethics Assessment, 30 minutes for the Tool Evaluation Role Play, and 60 minutes for the Communication Challenge. If time is limited, select the activities most relevant to your specific leadership needs.

Do we need AI experts to evaluate candidates' performance on these exercises?

While having an AI expert involved is beneficial, it's not strictly necessary. What's more important is having evaluators who understand your business context and can assess strategic thinking, critical reasoning, and communication skills. Provide evaluators with a rubric that outlines what good responses should include.

How can we adapt these exercises for leaders with different levels of technical background?

These exercises are designed to assess AI literacy at a leadership level, not technical expertise. However, you can adjust expectations based on the role. For technical leadership positions, you might expect more depth in the Use Case Identification and Tool Evaluation exercises. For business leadership roles, you might place greater emphasis on the Communication Challenge and Ethics Assessment.

Should we share these exercises with candidates in advance?

For the AI Use Case Identification and Ethics Assessment, providing the scenario 24 hours in advance can lead to more thoughtful responses. The Tool Evaluation Role Play and Communication Challenge are better conducted without advance preparation to assess candidates' ability to think on their feet about AI topics.

How do we evaluate candidates who have limited prior exposure to AI?

Focus on evaluating their learning agility and critical thinking rather than existing knowledge. Look for candidates who ask insightful questions, recognize the limits of their knowledge, and demonstrate a structured approach to problem-solving. The ability to quickly grasp new concepts and apply them thoughtfully is often more valuable than prior AI experience.

Can these exercises be conducted remotely?

Yes, all of these exercises can be adapted for remote settings. Use video conferencing platforms with screen sharing capabilities for presentations. For the Tool Evaluation Role Play, ensure both the "vendor" and candidate have stable internet connections. Consider providing materials slightly earlier for remote sessions to account for potential technical issues.

AI literacy is rapidly becoming a non-negotiable competency for effective leadership in the digital age. By implementing these practical work samples, organizations can identify leaders who not only understand AI concepts but can apply that understanding to drive strategic value, ensure ethical implementation, evaluate technical claims critically, and communicate effectively about AI across the organization.

The leaders who excel at these exercises are those who can bridge the gap between technical possibilities and business realities—a crucial skill as AI becomes increasingly embedded in organizational operations. By investing in leadership teams with strong AI literacy, organizations position themselves to leverage AI's transformative potential while navigating its complexities and challenges.

For more resources to help build AI-literate leadership teams, explore Yardstick's comprehensive tools for creating AI-optimized job descriptions, generating insightful interview questions, and developing structured interview guides.

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