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Foundation Tier Module 2

The State of AI

Strategy & Risk in the AI Revolution

130 Pages 5 Units Intermediate
MODULE 2

The State of AI

Strategy & Risk in the AI Revolution

Introduction

Module 2 provides the strategic foundation for understanding AI's impact on business and society. While Module 1 covered AI fundamentals, Module 2 examines the forces reshaping entire industries, the invisible AI systems making decisions about your life, and the infrastructure challenges threatening AI's future.

You'll analyze AI industry dynamics using Porter's Five Forces, understand the convergence of five global AI trends, quantify AI's $15.7 trillion GDP impact, and confront hard truths about AI's limitations through the "jagged frontier" concept. This isn't hype—it's the reality check executives need.

What You'll Achieve

By the end of Module 2, you'll understand which industries face existential AI threats, how invisible AI systems shape daily life, where AI fails catastrophically, why GPU scarcity determines competitive advantage, and the ethical dilemmas of algorithmic decision-making at scale.

Curriculum Overview

1

AI Industry Analysis

Pages 5-14

Apply Porter's Five Forces to AI industry dynamics and understand the convergence of five global forces reshaping competition.

  • Porter's Five Forces for AI
  • The 5 Global AI Forces (Data, Compute, Vision, Agents, Economics)
  • $15.7 Trillion GDP Impact Analysis
  • Klarna, JPMorgan, AlphaFold Case Studies
2

The Invisible Layer

Pages 15-24

Discover the 100+ AI decisions made about you daily—from credit scores to hiring algorithms to medical diagnoses.

  • Algorithmic Decision-Making at Scale
  • The Credit Score Black Box
  • Healthcare AI: IBM Watson's $62M Failure
  • When AI Becomes Infrastructure
3

Reality Check

Pages 25-35

The "jagged frontier" of AI capability—where it excels and where it catastrophically fails. Avoid billion-dollar mistakes.

  • The Jagged Frontier Concept
  • Common Sense Failures
  • AI Hallucinations: Lawyer Case Study
  • When NOT to Use AI
4

Infrastructure Crisis

Pages 36-47

The GPU shortage, energy wall, and chip wars determining who wins the AI race. Infrastructure is strategy.

  • The Great GPU Shortage
  • Energy Requirements: Nuclear Power Returns
  • TSMC's $100B Monopoly
  • Why Microsoft Needs Data Centers the Size of Cities
5

Economic Transformation & Ethics

Pages 48-60

The $15.7 trillion GDP shift, labor market disruption, and ethical dilemmas that will define the next decade.

  • McKinsey's $15.7T GDP Impact Model
  • Which Jobs Disappear First
  • The Truth Crisis: Deepfakes at Scale
  • Algorithmic Monoculture Risks

Key Frameworks You'll Learn

Porter's Five Forces for AI

Classic strategy framework applied to AI industry structure—understand supplier power, competitive intensity, and disruption threats.

The Invisible Layer

Map the 100+ daily AI decisions affecting your life—from credit scores to hiring algorithms to medical diagnoses.

The Jagged Frontier

Understand where AI excels and where it catastrophically fails—avoid the billion-dollar mistakes others have made.

Infrastructure Realities

Why GPU shortages, energy constraints, and chip monopolies determine who wins the AI race.

Previous

Module 1: AI Foundations

Next

Module 3: Jobs & Society