If you’ve ever been frustrated by technology that promises the moon but doesn’t quite deliver, you’re not alone. One CEO recently experienced this firsthand when an AI assistant impressed with its knack for polished emails and straightforward responses stumbled over providing detailed project updates. This isn’t about failure—it’s a reminder that AI isn’t a monolithic, all‑knowing entity, but a bundle of specialised skills.
At its heart, AI can be understood through three simple functions. The Think ability lets the system break down complex tasks, reason through decisions, and adjust its approach on the fly—much like a trusted colleague planning out a project. Then there’s the Know function, which uses Retrieval‑Augmented Generation (RAG) to pull in relevant information from various sources, giving context to each response. Finally, the Act function empowers the AI to execute tasks by interfacing with other tools and systems via the Model Context Protocol (MCP), turning insights into real-world actions.
When integrated, these abilities can transform an AI from a simple assistant into a proactive partner in your business strategy. If you’ve been puzzled by the gap between what you expect and what you get, understanding these core functions can help you harness AI more effectively to optimise operations and drive meaningful results.
