Smart machines can recognize certain things that are fact, logic, or pattern based but unable to discern many situations that humans recognize as common sense. Even the most sophisticated uses of Artificial Intelligence (AI) are subject to these limitations. For example, when confronted with heavy traffic or unexpected situations, driverless cars just sit there. In 1945, British philosopher Gilbert Ryle gave a famous lecture about two kinds of knowledge by pointing out that a child knows that a bicycle has two wheels that its tires are filled with air, and that business leaders ride the bike by pushing its pedals. As AI changes the nature of work and employment, innovative leaders will define and execute AI plans that evolve to create performance loops. The key to creating such a collaboration comes down to understanding the fundamentals of what AI is good at and where its value is human-dependent.