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Large Language ModelsFortune AIPublished: Sep 28, 2026, 22:00 JST

Paul Cheek: 30% of S&P 500 execs AI-literate, 78% gap

Paul Cheek: 30% of S&P 500 execs AI-literate, 78% gap

3 Key Points

  1. What happened

    Paul Cheek's AI-Driven Enterprise Institute study found just over 30% of S&P 500 executives are AI-literate, and those executives achieve 78% stronger AI execution than peers.

  2. Why it matters

    Cheek says CHROs should own this gap — investing in AI training and making AI literacy part of workforce planning — positioning HR as the strategic leader for human-agent organization.

  3. What to watch

    Cheek has not found any company that has implemented his AI-native org chart, so the pitch hinges on whether CHROs adopt training before redesign; he built a prototype himself.

WHO IT HITSChief human resources officers (CHROs) at large companies are the audience Cheek is pitching, and they are being asked to shift from managing headcount to auditing whether a role needs human judgment or an AI agent's uptime. Their decisions on AI training and org-chart redesign could reshape how work is assigned across the enterprise.

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Context & Analysis

The org chart most companies use today maps reporting lines — who answers to whom. Cheek's proposal replaces that with a map of access and authority: which employees and AI agents can reach which systems, who can spend from which budgets, and who gets consulted on which projects. He describes it as a dynamic, living document that changes as AI agents are added, retired, or build their own agents, tracking everything from social media accounts to Salesforce.

The study from Cheek's independent research organization, the AI-Driven Enterprise Institute, gives the pitch its numbers: just over 30% of executives at S&P 500 companies are AI-literate, and that group is achieving 78% stronger AI execution than their peers. Cheek's first step for CHROs is investing in AI training and upskilling; the second is rethinking the org chart. He argues the CHRO who takes this on will emerge as the most influential strategic leader in the organization.

What remains unproven is the org chart itself. Cheek acknowledges he has not found a company that has implemented this kind of technologically-advanced org chart — he built his own prototype using AI instead. So the near-term test is likely whether CHROs act on the literacy gap before adopting a new structural model, and whether training alone moves execution numbers. That makes the next phase one to watch for HR leaders weighing where to put budget and authority.

FAQ
What did the study find about AI literacy among executives?
The AI-Driven Enterprise Institute study found that just over 30% of executives at S&P 500 companies are AI-literate. That group is achieving 78% stronger AI execution than their peers.
Has any company implemented Cheek's AI-native org chart?
No. Cheek acknowledges he has not yet found a company that has implemented this kind of technologically-advanced org chart, though he created his own prototype using AI.
What does Cheek say the CHRO role should become?
Cheek says the CHRO title needs to change from managing headcount to auditing whether a given role needs a human's judgment or an AI agent's uptime.

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