CIOs don’t need more AI—they need AI that actually understands their business (www.techradar.com)

Recent insights from the CEO of Wisdom AI highlight a critical gap in enterprise AI capabilities: while current tools excel at simple tasks like drafting emails or summarizing documents, they often fail to grasp the complex institutional contexts that govern business operations. As AI moves toward more strategic decision-making roles, the lack of understanding of how organizations function can lead to unreliable outputs. This emphasizes the need for "institutional-mode AI," systems that integrate and reason across a company's interconnected processes, metrics, and historical decisions. Significantly, this shift calls for defining essential business semantics, ownership, and governance to ensure that AI outputs are reliable and actionable. Current AI systems may produce plausible narratives in response to queries, but without a solid understanding of the organizational framework, these responses can lack the depth and reliability required for effective decision-making. The article argues that true enterprise value from AI will emerge when these systems are equipped to operate proactively across various functions, identifying issues and recommending grounded actions rather than merely responding to isolated prompts. This evolution will redefine how AI can serve as a trusted partner in organizational decision-making.