Many business leaders have high expectations for AI but encounter limited results due to a misunderstanding of its capabilities.AI can be evaluated based on three core capabilities: Think, Know, and Act.Think focuses on an AI's ability to reason, plan, and make decisions autonomously.Know involves AI's access to and application of relevant knowledge through Retrieval-Augmented Generation (RAG).Act relates to AI's execution of tasks by interacting with tools, systems, and workflows via Model Context Protocol (MCP).When combined, these capabilities transform AI into an action-oriented collaborator.Thinking AI operates like a smart analyst, making decisions and taking initiative.Knowing AI ensures access to up-to-date, business-specific knowledge for more accurate responses.Acting AI goes beyond recommendations, executing tasks and delivering real outcomes.The integration of Think, Know, and Act creates intelligent, proactive AI that drives meaningful business value.