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Home»Business»“AI is mathematics, not magic.” AI and business strategist Elin Hauge discusses the role of AI in today’s world.
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“AI is mathematics, not magic.” AI and business strategist Elin Hauge discusses the role of AI in today’s world.

versatileaiBy versatileaiApril 1, 2025No Comments5 Mins Read
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Photo courtesy of Elin Hauge

Opinions expressed by digital journal contributors are unique.

Elin Hauge spent more than 20 years at the forefront of artificial intelligence, leading businesses and leaders through the complexities of AI’s evolution. With a deep understanding of technology, human behavior, communication, language and mathematics, she has become an essential voice in navigating the intersection of AI and society. As conversations around AI continue to inspire fear and speculation, she brings clarity, emphasizing that artificial intelligence is not a pristine force beyond human control, but rather a carefully designed mathematical system rooted in logic and human intentions.

For many, AI appears as an incoming presence, threatens job security and disrupts industry. Hauge argues that these fears stem from misunderstandings rather than reality. The truth is that AI is not a self-sufficient entity at its core, but rather a collection of mathematical algorithms designed to efficiently process huge amounts of data rather than making independent decisions. You don’t think, feel, or act outside of programming. It’s not magic, it’s a large-scale prediction model. If companies can’t grasp this, they fall into the trap of misusing AI, overestimating its capabilities or underestimating its potential. Currently, almost 60% of executives lack AI knowledge and training, highlighting the knowledge gap in senior positions. Leaders who lack a fundamental understanding of these mathematical dynamics risk making costly errors and missing out on opportunities that could drive their organization forward.

Hauge emphasizes the need for high-class leadership. She explains that many executives today do not have the skills necessary to truly understand the role of AI beyond the buzzwords and licenses of generator tools like ChatGPT. AI is not just a software upgrade or a flashy trend. This is a toolbox of complex algorithms that can be used to optimize decision-making, automate processes, and accelerate efficiency, if understood correctly. Without an abstract understanding of the mathematical foundations and the nature of predictive models, decision-makers cannot make strategic miscalculations and see where AI brings true value. The numbers speak for itself as more than 82% of global businesses are currently using or investigating AI use compared to 20% in 2017.

“There seems to be a misconception that AI is about chat-GPT processes, but that’s more than that. AI is a toolbox for solving business problems and you need to understand how to apply those tools. It’s about mathematical algorithms and self-learning software programs. It’s not a trend or a mainstay anymore.

One of the biggest misconceptions surrounding AI is that we are responsible for unemployment and industry changes. Hauge challenges this concept and argues that throughout history, duties evolve with technological advances. The reality is that AI doesn’t eliminate jobs. For example, automation may threaten those who perceive an accountant as acknowledging their role simply by calculating numbers. However, accountants who see their role as financial advisors in guiding clients through economic decision-making naturally employ AI-driven tools to enhance their expertise. The key to longevity for a career in an AI-driven world is adaptability and ability.

“Times are changing, and it is also no different to learning how to work with AI, as roles and at least how society perceives and uses them.

At the heart of AI is not omnipotent power, but human ingenuity. Everything AI does is determined by people by design, tested and refined mathematical models. There is no reason for independent or voluntary rebellion. This is only mathematical algorithms that learn from the data they are fed. AI is misprinted as a runaway technique and is too strong for creators to control. The reality is not that dramatic. It’s a tool, and like any other tool, its impact depends on the hand that you wields it.

As Hauge reminds us, AI is one of the greatest achievements of humanity, but there is nothing without human supervision. It’s never a replacement for people. It does not exceed the need for human input. The fear of AI controlling or rendering humanity abolishing is not based on the reality of technology, but on our uncertainty and predictions, and our desire to believe in superhuman fiction. Throughout history, industries have risen and fallen – not due to singular technology, but due to the natural progression of human society. If a particular job or sector declines, it’s not the AI’s fault. It is simply the natural evolution of industry and innovation. The real challenge is not just the growth of AI, but the human race that responsibly understands and uses it and continues to create value.

“Society has generally seen how quickly technology has evolved in the 21st century alone. It can be difficult to keep up with the latest gadgets and trends. In fact, AI is no different. In fact, it is now evolving faster than some of the daily lives of people. Our knowledge and understanding is so many possibilities.

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