The three types of intelligence and how leaders can leverage them
As we navigate modern-day complexities, understanding the way we learn, apply, and adapt knowledge becomes increasingly important. In the 1940s, psychologist Raymond Cattell is credited with popularizing an idea that I think about often: Human intelligence isn't just one thing—it's two. Later, his student, John Horn, expanded on this idea, elaborating on those two components of intelligence:
1. Fluid intelligence is how we solve new problems. It's how we think when there's no manual.
2. Crystallized intelligence is what we accumulate—knowledge, vocabulary, and life experiences. It's what we bring with us.
I was reminded of these concepts when reading From Strength to Strength – Finding Success, Happiness and Deep Purpose in the Second Half of Life by Arthur C. Brooks. Brooks argues that the key to a fulfilling second half of life is knowing when—and how—to shift from relying on our declining fluid intelligence to embracing our growing crystallized intelligence.
Now, as AI is center stage in my industry, I find myself wondering, 'What happens to these two forms of human intelligence when we bring a third, manufactured form into the equation?'
AI'S ROLE IN OUR INTELLIGENCE
Everyone keeps asking whether AI will replace us. Maybe the better questions are: How does AI impact our intelligence, and what does it look like when all three types work together?
AI isn't a tool running parallel to us; it's running perpendicular to how we think, evolving how we solve problems, and how we apply knowledge.
In trying to make sense of AI's place within Horn and Cattell's intelligence models, I unearthed two truths:
• AI expands our fluid intelligence. It helps us see more, faster. It tests ideas and simulates outcomes. Like a sparring partner that never sleeps.
• AI also enhances our crystallized intelligence. It connects things, finds patterns, surfaces forgotten knowledge, and adds context. Used intentionally, it sharpens our ability to connect the dots that matter.
THE SYNERGY OF HUMAN AND AI
When we leverage both our fluid and crystallized intelligence, in tandem with AI (rather than just prompting it), we realize a new kind of exponential potential: Human + AI.
However, this synergy doesn't just happen; it takes deliberate orchestration, the kind I explored in The Art of Business and People Orchestration. It's not about controlling AI, nor letting it run wild. It's about knowing when to trust your brain, when to tap the machine, and how to make the mix work for you.
In the end, we still bring the meaning to the table. Intelligence is about what we do with what we know and the insights we gain along the journey that shape our intuition. This intuition, honed through years of experience, becomes an invaluable asset in decision-making.
So how can leaders leverage these three types of knowledge?
1. Through Strategic Self-Awareness
Understanding where you sit on the fluid-crystallized spectrum lets you use your natural and learned intelligence more intentionally. The AI surge has prompted this ultimate reality check.
I recently helped structure our biannual partners meeting. Knowing my strength in crystallized intelligence, I designed the agenda to give me time and space to prepare and bring relevant data I had gathered months earlier. This approach allowed me to share insights with other crystallized-intelligence-driven minds—people who also value time to connect non-obvious dots. Together, we invited more creativity and context into the room.
I used AI intentionally to support the mission, with a clear sense of when to tap into more crystallized intelligence-style tools (structured, deep, context-aware) versus when to lean on AI for quick, fluid 'a-ha' moments. The awareness of where I sit on the spectrum—and knowing how to guide AI accordingly—elevated the experience.
2. By Strengthening Their AI Utilization
Use AI as a partner, aligned with your organization's goals. Knowing how to tap into fluid and crystallized intelligence gives you a clearer idea of what you want to extract from the tools you use.
Some see AI as an oracle, others as a smart autocomplete tool or robot-like organizer. Everyone is right: AI reflects what we ask, and how we give it the right context. With pragmatic input, you get accurate answers; with generic prompts, you get wildly wrong ones. When you treat AI as a partner and understand how to access either fluid or crystallized intelligence through it, you unlock more value and avoid the common pitfalls.
3. By Becoming True Orchestrators
Master the balance of Natural + AI Fluid and Crystallized Intelligence. By doing this, you become a true orchestrator of this modern-day world. Not passengers or victims, but creators.
When I wrote my book, 'agentic' wasn't even on the radar, so I focused more on the orchestration of humans. In the early days of AI, humans led the orchestration, but now, agents are part of the mix. Just two years later, it's become a milkshake of tools, agents, and humans working together. The more one understands these entities, the better the orchestration—and the bigger the impact.
Fluid. Crystallized. Artificial. All of it. Together.
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Fast Company
27-05-2025
- Fast Company
The three types of intelligence and how leaders can leverage them
As we navigate modern-day complexities, understanding the way we learn, apply, and adapt knowledge becomes increasingly important. In the 1940s, psychologist Raymond Cattell is credited with popularizing an idea that I think about often: Human intelligence isn't just one thing—it's two. Later, his student, John Horn, expanded on this idea, elaborating on those two components of intelligence: 1. Fluid intelligence is how we solve new problems. It's how we think when there's no manual. 2. Crystallized intelligence is what we accumulate—knowledge, vocabulary, and life experiences. It's what we bring with us. I was reminded of these concepts when reading From Strength to Strength – Finding Success, Happiness and Deep Purpose in the Second Half of Life by Arthur C. Brooks. Brooks argues that the key to a fulfilling second half of life is knowing when—and how—to shift from relying on our declining fluid intelligence to embracing our growing crystallized intelligence. Now, as AI is center stage in my industry, I find myself wondering, 'What happens to these two forms of human intelligence when we bring a third, manufactured form into the equation?' AI'S ROLE IN OUR INTELLIGENCE Everyone keeps asking whether AI will replace us. Maybe the better questions are: How does AI impact our intelligence, and what does it look like when all three types work together? AI isn't a tool running parallel to us; it's running perpendicular to how we think, evolving how we solve problems, and how we apply knowledge. In trying to make sense of AI's place within Horn and Cattell's intelligence models, I unearthed two truths: • AI expands our fluid intelligence. It helps us see more, faster. It tests ideas and simulates outcomes. Like a sparring partner that never sleeps. • AI also enhances our crystallized intelligence. It connects things, finds patterns, surfaces forgotten knowledge, and adds context. Used intentionally, it sharpens our ability to connect the dots that matter. THE SYNERGY OF HUMAN AND AI When we leverage both our fluid and crystallized intelligence, in tandem with AI (rather than just prompting it), we realize a new kind of exponential potential: Human + AI. However, this synergy doesn't just happen; it takes deliberate orchestration, the kind I explored in The Art of Business and People Orchestration. It's not about controlling AI, nor letting it run wild. It's about knowing when to trust your brain, when to tap the machine, and how to make the mix work for you. In the end, we still bring the meaning to the table. Intelligence is about what we do with what we know and the insights we gain along the journey that shape our intuition. This intuition, honed through years of experience, becomes an invaluable asset in decision-making. So how can leaders leverage these three types of knowledge? 1. Through Strategic Self-Awareness Understanding where you sit on the fluid-crystallized spectrum lets you use your natural and learned intelligence more intentionally. The AI surge has prompted this ultimate reality check. I recently helped structure our biannual partners meeting. Knowing my strength in crystallized intelligence, I designed the agenda to give me time and space to prepare and bring relevant data I had gathered months earlier. This approach allowed me to share insights with other crystallized-intelligence-driven minds—people who also value time to connect non-obvious dots. Together, we invited more creativity and context into the room. I used AI intentionally to support the mission, with a clear sense of when to tap into more crystallized intelligence-style tools (structured, deep, context-aware) versus when to lean on AI for quick, fluid 'a-ha' moments. The awareness of where I sit on the spectrum—and knowing how to guide AI accordingly—elevated the experience. 2. By Strengthening Their AI Utilization Use AI as a partner, aligned with your organization's goals. Knowing how to tap into fluid and crystallized intelligence gives you a clearer idea of what you want to extract from the tools you use. Some see AI as an oracle, others as a smart autocomplete tool or robot-like organizer. Everyone is right: AI reflects what we ask, and how we give it the right context. With pragmatic input, you get accurate answers; with generic prompts, you get wildly wrong ones. When you treat AI as a partner and understand how to access either fluid or crystallized intelligence through it, you unlock more value and avoid the common pitfalls. 3. By Becoming True Orchestrators Master the balance of Natural + AI Fluid and Crystallized Intelligence. By doing this, you become a true orchestrator of this modern-day world. Not passengers or victims, but creators. When I wrote my book, 'agentic' wasn't even on the radar, so I focused more on the orchestration of humans. In the early days of AI, humans led the orchestration, but now, agents are part of the mix. Just two years later, it's become a milkshake of tools, agents, and humans working together. The more one understands these entities, the better the orchestration—and the bigger the impact. Fluid. Crystallized. Artificial. All of it. Together.
USA Today
28-10-2024
- USA Today
No, 'basics' do not cost $11,000 a year more than they did 18 months ago
The claim: Basic expenses cost a family $11,000 more a year than they did 18 months ago An Oct. 16 post on Threads (direct link, archive link) makes a claim about the supposed cost of inflation. 'It costs a family of four $11,000 more a year to buy the exact same groceries and basics today as it did 18 months ago,' the post reads. The post was liked more than 500 times in two weeks. More from the Fact-Check Team: How we pick and research claims | Email newsletter | Facebook page Our rating: False Multiple measures put the annualized inflationary costs for basic goods and services around $3,000, not $11,000. Slowing inflation narrows gap in cost of 'basics' Inflation that began during the COVID-19 pandemic has shaken the U.S. economy for years, but recent data shows that the rate has slowed considerably in recent months. That decline is why the claim of an $11,000 hit to household budgets over the past year and a half misses the mark, multiple experts told USA TODAY John Horn, an economics professor at Washington University in St. Louis, tackled the calculation using changes in the consumer price index as a measure of inflation. He said average monthly household spending in April 2023 was $6,272, which grew to $6,519 in September 2024. The $247 monthly difference in the same basket of goods and other "basics" – multiplying the monthly added costs by 12 – translates to an annualized increase in costs of $2,962. Horn said the $11,000 figure for inflationary costs is closer to the mark when looking at inflation over the entire Biden administration. Average monthly consumer spending in January 2021 was $5,408, meaning it increased by $1,111 by September 2024. That translates into an annualized cost increase of slightly over $13,000. Republican members of Congress' Joint Economic Committee used a slightly different basket of expenses than Horn in calculating the impact of inflation, using an undefined 'typical' household, and its results are similar. The committee created a tracker for inflation costs in every state and nationally since January 2021, and it shows the annualized cost of goods today is about $3,300 higher than it was 18 months ago. At no point does the data show annualized inflation costs growing near $11,000 between any dates 18 months apart. Fact check: Post misleads on funds for internet access, EV charging stations Zachary Milne, a senior economist and research analyst with the nonpartisan Common Sense Institute, said the committee's calculations seem to be a fair way of showing the change in the cumulative costs of shelter, energy, transportation and food. But he said a better measure of the impact of inflation would be to look at the cumulative change in costs from January 2021 to today, while also reflecting that average wages have gone up and inflation would still be around 1.5% to 2% annually in a typical year. Still, the specific impact claimed in the social media post is definitely wrong, he said. 'Inflation has certainly cooled,' he told USA TODAY. 'The increases from 18 months ago are not going to be as dramatic as when looking at the 18 months up to November 2022.' Reilly White, a finance professor at the University of New Mexico, pointed out that inflation, as measured by the consumer price index, was 4.3% over the last 18 months. 'For the $11k figure to make sense on an annualized basis, an average consumer would have to be spending $458k a year – but the average household only makes $80k,' he wrote in an email. He pointed to another measure of inflation – the more than 19% increase in personal consumption expenditures cited by the House Budget Committee – as a more complete way of looking at the impact of inflation during the Biden administration. According to that measure, the average family of four is paying more than $17,000 more per year than they did in January 2021. In other words, inflation is certainly up since Biden took office, but not nearly to the degree this post claims over the last 18 months. USA TODAY could not reach the Threads user who posted the claim for comment. Our fact-check sources: Thank you for supporting our journalism. You can subscribe to our print edition, ad-free app or e-newspaper here. USA TODAY is a verified signatory of the International Fact-Checking Network, which requires a demonstrated commitment to nonpartisanship, fairness and transparency. Our fact-check work is supported in part by a grant from Meta.
Yahoo
28-10-2024
- Yahoo
No, 'basics' do not cost $11,000 a year more than they did 18 months ago
The claim: Basic expenses cost a family $11,000 more a year than they did 18 months ago An Oct. 16 post on Threads (direct link, archive link) makes a claim about the supposed cost of inflation. 'It costs a family of four $11,000 more a year to buy the exact same groceries and basics today as it did 18 months ago,' the post reads. The post was liked more than 500 times in two weeks. How we pick and research claims | Email newsletter | Facebook page Our rating: False Multiple measures put the annualized inflationary costs for basic goods and services around $3,000, not $11,000. Slowing inflation narrows gap in cost of 'basics' Inflation that began during the COVID-19 pandemic has shaken the U.S. economy for years, but recent data shows that the rate has slowed considerably in recent months. That decline is why the claim of an $11,000 hit to household budgets over the past year and a half misses the mark, multiple experts told USA TODAY John Horn, an economics professor at Washington University in St. Louis, tackled the calculation using changes in the consumer price index as a measure of inflation. He said average monthly household spending in April 2023 was $6,272, which grew to $6,519 in September 2024. The $247 monthly difference in the same basket of goods and other "basics" – multiplying the monthly added costs by 12 – translates to an annualized increase in costs of $2,962. Horn said the $11,000 figure for inflationary costs is closer to the mark when looking at inflation over the entire Biden administration. Average monthly consumer spending in January 2021 was $5,408, meaning it increased by $1,111 by September 2024. That translates into an annualized cost increase of slightly over $13,000. Republican members of Congress' Joint Economic Committee used a slightly different basket of expenses than Horn in calculating the impact of inflation, using an undefined 'typical' household, and its results are similar. The committee created a tracker for inflation costs in every state and nationally since January 2021, and it shows the annualized cost of goods today is about $3,300 higher than it was 18 months ago. At no point does the data show annualized inflation costs growing near $11,000 between any dates 18 months apart. : Post misleads on funds for internet access, EV charging stations Zachary Milne, a senior economist and research analyst with the nonpartisan Common Sense Institute, said the committee's calculations seem to be a fair way of showing the change in the cumulative costs of shelter, energy, transportation and food. But he said a better measure of the impact of inflation would be to look at the cumulative change in costs from January 2021 to today, while also reflecting that average wages have gone up and inflation would still be around 1.5% to 2% annually in a typical year. Still, the specific impact claimed in the social media post is definitely wrong, he said. 'Inflation has certainly cooled,' he told USA TODAY. 'The increases from 18 months ago are not going to be as dramatic as when looking at the 18 months up to November 2022.' Reilly White, a finance professor at the University of New Mexico, pointed out that inflation, as measured by the consumer price index, was 4.3% over the last 18 months. 'For the $11k figure to make sense on an annualized basis, an average consumer would have to be spending $458k a year – but the average household only makes $80k,' he wrote in an email. He pointed to another measure of inflation – the more than 19% increase in personal consumption expenditures cited by the House Budget Committee – as a more complete way of looking at the impact of inflation during the Biden administration. According to that measure, the average family of four is paying more than $17,000 more per year than they did in January 2021. In other words, inflation is certainly up since Biden took office, but not nearly to the degree this post claims over the last 18 months. USA TODAY could not reach the Threads user who posted the claim for comment. Our fact-check sources: Zachary Milne, Oct. 24, Phone interview with USA TODAY Reilly White, Oct. 24, Email exchange with USA TODAY John Horn, Oct. 22-23, Email exchange with USA TODAY Joint Economic Committee Republicans, accessed Oct. 22, State Inflation Tracker Joint Economic Committee Republicans, April 13, 2022, Inflation-tracker: Methodology House Budget Committee, June 28, Biden's 20 Percent Inflation Tax Costs American Families Over $17,000 Per Year Federal Reserve Bank of St. Louis, updated Oct. 10, Consumer Price Index for All Urban Consumers Thank you for supporting our journalism. You can subscribe to our print edition, ad-free app or e-newspaper here. USA TODAY is a verified signatory of the International Fact-Checking Network, which requires a demonstrated commitment to nonpartisanship, fairness and transparency. Our fact-check work is supported in part by a grant from Meta. This article originally appeared on USA TODAY: Post overestimates cost of inflation in past 18 months | Fact check
