How to Institutionalize an AI-First Culture: Start with the Competency Model

AI tools are spreading fast. But if you want AI to shape how your organization works long-term, you need more than tool adoption—you need cultural integration. That kind of culture shift won’t stick through one-off training or pilot programs. It must be baked into how you hire, develop, evaluate, and reward your people. The key? Your competency model.

A well-defined competency model is the backbone of your talent system. It drives job descriptions, hiring criteria, performance expectations, training design, leadership development, and even compensation. If you want AI to take root in your company, your competency model is where to start.

Why It Matters

Without institutionalization, change fades. Employees leave. Leaders rotate. Strategic focus shifts. If AI skills and expectations aren’t codified and reinforced, they disappear with the people who championed them.

But if AI is embedded in your competency model, it becomes part of the system—making it easier to hire for it, develop it, and reward it over time.

How to Do It: AI + Competency Model = Culture Shift

1. Define What AI-Readiness Looks Like by Role Family

Not everyone needs to be a prompt engineering expert. But every function should have defined expectations for how AI can enhance their work.

• For marketers: ability to use AI tools for audience segmentation or content ideation.

• For finance: using AI to speed up forecasting or reporting.

• For people managers: understanding ethical use, encouraging experimentation.

Pro Tip: Start small. Review your existing competencies and identify areas where AI can enhance decision-making, problem-solving, or productivity.

2. Update Core Competencies Across Levels

Introduce AI-related expectations across multiple levels—not just for tech roles.

Examples:

• Entry-level: “Demonstrates curiosity and openness to using AI tools to improve everyday work.”

• Manager: “Supports team experimentation with AI tools to improve workflows.”

• Senior leader: “Integrates AI opportunities into strategic planning and resource allocation.”

Pro Tip:  Make this language actionable and observable—something managers and employees can assess in real conversations.

3. Align Talent Processes to Reinforce These Competencies

Once AI shows up in your model, the rest of the system can do its job:

• Hiring: Update job postings and interview questions to assess AI-relevant behaviors.

• Learning: Offer training aligned to the new competency areas.

• Performance Reviews: Include AI usage or experimentation in goal-setting conversations.

• Promotions: Look for AI application as a marker of innovation and leadership.

• Compensation: Use AI-driven improvements as part of performance-based incentives.

Example: A team lead who identifies a repetitive workflow, uses AI to cut admin time by 30%, and shares that approach across the team should be recognized and rewarded—not just for output, but for capability development.

4. Develop AI Learning Pathways Aligned to the Model

Learning shouldn't be one-size-fits-all. Use the updated competencies to guide what training is offered to whom.

• Curate AI learning tracks by role level and function.

• Pair foundational knowledge (what AI is) with role-specific applications (how it helps in your job).

• Include practice spaces and coaching—not just videos.

Pro Tip:  Use real work as the training ground: “Here’s how to use AI in your current project.”

5. Make AI Conversations a Habit in Talent Touchpoints

Competencies only matter if they show up in day-to-day talent practices. Help your managers and HR partners:

• Reference AI competencies in check-ins and development plans.

• Use coaching questions that normalize AI thinking: “What’s one process you could streamline with AI?”

• Share examples of AI use across teams to build internal momentum.

Pro Tip:  Culture changes through repetition. When AI is talked about consistently, it becomes expected—not extra.

AI-first culture doesn’t come from having the best tools. It comes from shaping the habits, expectations, and systems that guide how people work and grow.

Your competency model is the anchor. Get that right, and everything else—from hiring to performance to development—can move with purpose.