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AI's biggest risk is not incompetence, but its tendency to fill context gaps with general industry knowledge. This can seem insightful but leads to hallucinations. AI Stewards must provide specific business data and knowledge to constrain the AI and ensure relevant, accurate output.

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Even the most advanced AI is ineffective without business context. The CEO estimates 90% of crucial company knowledge—strategy, rationale, priorities—is undocumented and simply "floats in the air." This lack of structured, accessible context is a bigger barrier to AI adoption than the technology itself.

The primary barrier for enterprise AI is the 'context gap.' Models trained on public data have no understanding of your specific business—its metrics, language, or history. The key is building infrastructure to feed this proprietary context to the AI, not waiting for smarter models.

AI models fail in business applications because they lack the specific context of an organization's operations. Siloed data from sales, marketing, and service leads to disconnected and irrelevant AI-driven actions, making agents seem ineffective despite their power. Unified data provides the necessary 'corporate intelligence'.

For complex enterprise tasks, the latest AI models are often intelligent enough. The true challenge is the 'context gap'—engineering systems that can absorb, clean, and understand the vast, messy, domain-specific context of a single client, like 25 years of financial documents, to apply that intelligence effectively.

The primary danger of AI in product management isn't technical failure but the abdication of critical thinking. Over-relying on AI summaries of user feedback means missing the crucial 'color' and context. Leaders risk losing their direct connection to the customer's voice by outsourcing their thinking to an LLM.

A critical learning at LinkedIn was that pointing an AI at an entire company drive for context results in poor performance and hallucinations. The team had to manually curate "golden examples" and specific knowledge bases to train agents effectively, as the AI couldn't discern quality on its own.

AI models lack novel context and frequently produce errors. The success of an AI-first product hinges on leveraging domain experts to build the model's "muscle," provide essential context, and constantly validate its output to ensure accuracy and value.

AI accelerates data retrieval, but it creates a dangerous knowledge gap. Junior employees can find facts (e.g., in a financial statement) without the experience-based judgment to understand their deeper connections and second-order consequences for the business.

Simply providing data to an AI isn't enough; enterprises need 'trusted context.' This means data enriched with governance, lineage, consent management, and business rule enforcement. This ensures AI actions are not just relevant but also compliant, secure, and aligned with business policies.

AI has no memory between tasks. Effective users create a comprehensive "context library" about their business. Before each task, they "onboard" the AI by feeding it this library, giving it years of business knowledge in seconds to produce superior, context-aware results instead of generic outputs.

AI Knows Your Industry But Nothing About Your Business, Creating a Context Gap Risk | RiffOn