AI competency framework: The next strategic capability for business leaders
Artificial intelligence (AI) has moved beyond experimentation to become a core driver of business transformation. As AI becomes embedded across every business function, experts argue that AI competency will soon be regarded as a fundamental leadership capability, alongside strategic and financial management.
In just a few years, AI has become one of the most talked-about topics in the business world. Thousands of AI training courses have emerged, covering everything from prompt engineering and ChatGPT to AI applications in marketing and office productivity. However, as AI becomes more deeply embedded in business operations and production, many experts argue that this approach is beginning to reveal its limitations.
Speaking with the press, Ms. Pham Thu Hang, CEO of the VIETSTAR Institute of Management and Consulting, Head of Paris Graduate School of Management in Vietnam, and Director of the Vietnam Singapore Board Forum (VSBF), emphasized that successfully integrating AI into business requires leaders and managers to develop competencies in data governance, cybersecurity, identifying automation opportunities, improving productivity, optimizing decision-making processes, and strengthening customer relationships. Such capabilities cannot be acquired through isolated training courses alone; they require a comprehensive AI Competency Framework.
Businesses are not short of courses on prompt engineering
Drawing on her expertise in training executive leadership and management development, Ms. Pham Thu Hang noted that today’s AI training market remains largely focused on teaching people how to use AI tools. While such courses help learners become familiar with AI, they are not sufficient to address the broader challenges of AI-driven business transformation.
“Businesses are not short of courses on prompt engineering or using ChatGPT, but what they need is a competency framework that enables executives and managers to understand where AI should be deployed, what value it can create, and how its effectiveness should be measured. This is the difference between learning AI skills and building AI competencies.
As AI gradually becomes part of business operations, companies are beginning to realise that knowing how to use the tools does not necessarily mean creating value. An employee may be very good at writing prompts, yet the business may still not know where to start changing its processes, how to restructure its operating model, or how to measure the effectiveness of its AI investments", said Ms. Pham Thu Hang.
Ms. Pham Thu Hang emphasised that businesses need to develop an AI competency framework because, according to her, AI is no longer a standalone technology. It is becoming embedded across every aspect of business.
“The AI Competency Framework will soon become a new standard for corporate leadership teams, from CEOs (Chief Executive Officers), CFOs (Chief Financial Officers), CTOs (Chief Technology Officers), and CHROs (Chief Human Resources Officers) to CMOs (Chief Marketing Officers), just as financial management and strategic management capabilities have been in the past", said Ms. Pham Thu Hang.
According to Ms. Pham Thu Hang, the AI Competency Framework training model does not focus on teaching the use of AI tools. Instead, it is designed to build a competency framework that enables business leaders and managers to understand how to integrate AI into strategy, operations, human resources, and business model innovation.
The AI competency standardization challenge for executives
According to expert, AI capabilities can be viewed across four levels of value. The first, AI skills, emphasizes the ability to effectively use AI tools through competencies such as prompt engineering and generative AI applications like ChatGPT. The second, AI Application, focuses on applying AI to automate business processes, enhance operational efficiency, and build no-code AI solutions that deliver measurable business value.
The final two levels represent the strategic and transformational dimensions of AI adoption. AI Competency provides the leadership capability framework required for executives and managers to embed AI into corporate strategy, redesign business processes, and drive sustainable competitive advantage. At the highest level, Professional Certification formally validates these capabilities through internationally recognized professional credentials, providing an objective benchmark of AI leadership aligned with global standards.
“The final two levels are the true determinants of an enterprise’s AI transformation capability, as they measure leadership and managerial competence rather than proficiency in using AI tools", Ms. Pham Thu Hang stated.
Having led France’s Executive Master of Business Administration (EMBA) programme for nearly two decades, Ms. Pham Thu Hang noted that in France, when it comes to AI competency frameworks, executives and managers typically choose programmes registered under the Répertoire National des Certifications Professionnelles (RNCP). This ensures that their professional competencies meet nationally recognized standards and are officially recognized by the French Government.
Distinct from short-term AI skills training, the Paris Certificate in AI for business - registered and accredited under the Répertoire National des Certifications Professionnelles (RNCP) - is designed as a comprehensive AI competency pathway. Rather than focusing solely on AI tools, the programme develops the strategic capabilities required to deploy, govern, and scale AI across the enterprise.
Its competency framework is tailored for senior executives and functional leaders, including CEOs, CFOs, CHROs, CTOs, and CMOs, whose roles are being fundamentally reshaped by digital transformation and the adoption of artificial intelligence in business.
In Vietnam, the VIETSTAR Institute of Management & Consulting, in collaboration with the Paris School of Technology & Business (PST&B) and Université Paris 1 Panthéon-Sorbonne, has launched the Paris Certificate in AI for Business - a French National Professional Certification in AI - to provide internationally recognized AI education and competency development aligned with global standards.
“Our ambition is to establish a comprehensive AI competency pathway for executives and business leaders, underpinned by clearly defined competency standards and internationally recognized certification,” Ms. Pham Thu Hang said “CEOs do not need to become technologists or software developers. What they need is the leadership capability to make strategic decisions in a business environment where AI is transforming every function of the organization".
According to Ms. Thu Hang, an effective AI competency framework for executive leaders comprises four critical capability domains.
The first is a sufficient understanding of AI to make informed strategic decisions - knowing where the opportunities lie, as well as the limitations of the technology.
Second is the capability to redesign business processes. AI creates value only when organizations are willing to transform the way they operate.
Third is the capability to govern data and manage AI-related risks. As AI becomes increasingly embedded in business decision-making, data has emerged as a strategic asset.
Fourth is the capability to lead people through transformation. AI will not replace the role of leadership, but it will fundamentally reshape how leadership is exercised.
Building an AI competency framework for Vietnamese enterprises
According to the expert, the global trend in executive education is that AI is no longer approached as a standalone technology discipline. Instead, it is increasingly being integrated across every dimension of business management. Rather than simply teaching executives how to use AI tools, leading business schools and international executive education providers are focusing on enabling leaders to understand how AI can be applied to enhance decision-making across each core management function.
“For example, in finance, AI is applied to data analytics, forecasting, and risk management. In marketing, it enables customer behavior analysis and the personalization of customer experiences. In human resources, AI supports talent acquisition, talent development, and workforce planning", the expert said.
“This shift demonstrates that AI is evolving beyond its role as a supporting technology to become a core capability embedded across every aspect of modern business management".
According to Ms. Pham Thu Hang, Vietnam should adopt a tiered approach to AI competency development, with capability frameworks tailored to different roles and levels within the enterprise, rather than applying a one-size-fits-all training programme.
“A CEO requires a very different AI competency framework from a technology engineer, just as a Chief Human Resources Officer needs different AI capabilities from a marketing specialist. A single training programme cannot effectively meet the needs of every role within an organization", Ms. Pham Thu Hang said.
In practice, an increasing number of Vietnamese enterprises have begun adopting AI in their operations. However, most applications remain limited to basic use cases aimed at improving efficiency or automating selected tasks. According to the expert, the greatest challenge facing Vietnamese businesses today is no longer access to AI technologies, but the ability to translate those technologies into tangible business value.
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