Artificial Intelligence and Generative AI

This chapter provides a comprehensive yet accessible deep dive into the evolving world of Artificial Intelligence (AI) and Generative AI (GenAI), positioning them as not merely technological trends but as strategic and managerial levers or differentiators. We begin by clarifying foundational definitions and taxonomies of AI, helping managers and Master of Business Administration (MBA) students make sense of its cognitive scope and modes of intelligence emulation. Then we unpack the three converging forces, data, algorithms, and compute, that have propelled AI from theoretical promise to practical disruption. Through simplified yet conceptually rich explanations of neural network architectures, the chapter intends to enable the reader to gain insight into how AI systems are designed to recognise patterns, learn from data, and make predictions or generate outputs. An additional focus is placed on GenAI as a watershed moment, a shift that redefines the boundaries of cognitive work. GenAI enables machines to generate human-like content and, potentially, recommendations and decisions at scale. To understand this better, we focus on the future of cognitive roles, the strategic implications for talent development, and the growing necessity for business functions to co-create rather than merely consume AI technologies. A mini case contrasting two business models in the accommodation sector serves to ground these insights in real-world dynamics, highlighting how data and AI can become sources of competitive advantage or disruption. Anchored by a mini case and discussion questions, we have designed this chapter to motivate future business leaders to go hands-on, develop AI fluency, and rethink business capabilities for a data-driven and algorithm-driven world.