
AI Literacy for Entrepreneurs
EP279 How higher ed moves from AI interest to governed use with James Hutson
A previous president from Lindenwood University (a former IBM executive) stands up in town halls and tells people he uses Claude - that it helped him organize the financial report. HR follows and says they used Gemini for an employee questionnaire. Then James Hutson PhD. goes and asks employees whether they understood that as permission. The answer? 'No. The policy says I'll get fired if I use it.' That gap is the subject of this episode. James is Senior Professor and Director of AI-Enabled Academic Transformation at Lindenwood University, with two PhDs - the first in art history, the second in AI, which he went back for in 2023 once it became clear the technology was going to touch everything. He's since published over 200 studies on AI use across disciplines and industries. His argument is that policy and governance have been swapped for each other. Policy is what you can't do - mostly, don't get us sued. Governance is how things get done, and far fewer organizations have that. Most think they have a strategy when what they have is a liability shield. Also in this one: why he thinks a policy should be deliberately vague, what his AI readiness assessments consistently find, why employees hide their own efficiencies, and the reason agentic AI projects keep failing at organizations that seemed ready for them. About Dr. James Hutson James Hutson is Senior Professor and Director of AI-Enabled Academic Transformation at Lindenwood University in St. Charles, Missouri. He holds two PhDs - the first in art history, the second in artificial intelligence, completed in 2023. He has published over 200 studies on AI adoption spanning education, finance, and industry, has designed more than 25 online degree programs, and established Lindenwood's XR and Gaming Lab. His recent book is Art History in the Age of Artificial Intelligence. What we get into (00:47) Two PhDs - art history first, then AI in 2023, once it was clear this touched everything (02:25) What keeps him up at night, and the three sleepless nights Ethan Mollick warned about (04:52) The earliest adopters were administrators. They just never told anyone. (08:44) Four institutional responses: lock down, FERPA-only, all-in, and the ungoverned middle (10:00) Why blanket bans rest on a legal assumption that hasn't been tested (12:08) Susan on dragging the next generation into the future (12:52) Policy versus governance, and why most "strategies" are liability shields (15:00) "People will do what they're allowed to do" (16:50) When governance becomes a compliance checkbox (17:31) The entrepreneurial mindset - curiosity plus a growth mindset (21:05) The three literacies: functional, ethical, disciplinary (26:33) If knowledge is cheap, what makes people indispensable? (27:33) Power skills, habits of mind, and what should actually be assessed (29:43) Stop testing recall. Test reasoning. (31:15) Adaptive governance - why a policy takes a year to write and is obsolete on arrival (34:14) The programmer who automated his own job, and whether firing him was the right call (36:31) Secret cyborgs - why people hide how easy the work has become (37:26) Susan on trust, and why efficiencies have always been hidden (38:32) What AI readiness assessments actually turn up (40:00) The three things employees say in every single organization (42:41) Why agentic AI fails: the invisible work nobody documented (45:28) Resources, and an open offer of his data Quotes "People will do what they're allowed to do." - the head of faculty development at Lindenwood, quoted by James Hutson "Governance is how you get things done. It's not telling people what they can and cannot do." - Dr. James Hutson "People say yeah, of course we have a strategy - but what they mean is they have a policy, which is 'don't get us sued'." - Dr. James Hutson "You can't accuse students of cheating with AI if you didn't show them how to use it to begin with." - Dr. James Hutson "Don't penalize them. Reward that type of discovery of change, so that you're not caught off guard." - Dr. James Hutson "People do not know how they get work done. And this is why agentic AI is failing." - Dr. James Hutson "We know what needs to be done. It's human nature and psychology that's slowing us down." - Dr. James Hutson The Holy Trinity James's term for the three voices that have to say the same thing before anyone believes any of them: Leadership - this is the policy, we are an AI-forward institution, I want you to do this HR - you can use the tools, you are not going to be fired for it IT - we are not monitoring you, and we are not going to report you for using an unapproved tool His observation is that these three are rarely in sync in any organization, and that most leaders listening will immediately think of a time they collided. The three literacies Functional - can you actually use it? How does it work? Ethical - what does responsible use mean in your specific field? Journalism, chemistry, and GIS have genuinely different standards. Disciplinary - what does your discipline require, including disciplines that are actively choosing to resist it? Developed with his colleague Dan Plate, who chairs Lindenwood's AI governance committee. Resources Lindenwood's employee use case policy for generative AI is here - https://www.lindenwood.edu/policies/list/use-of-generative-ai-in-employment-policy/ And its AI and emerging technology policy: https://www.lindenwood.edu/policies/list/ai-and-emerging-technology-literacy/ James suggests pasting one alongside your own and asking a model what would need to change James on LinkedIn: linkedin.com/in/jameshutsonphd His site: jameslhutsonphd.com His book: Art History in the Age of Artificial Intelligence Get host Susan Diaz's book, Swan Dive Backwards: wearenorthlightai.com/swan-dive-backwards Enjoyed this? This podcast isn't sponsored or funded. Ratings and shares are how people find it.

