The 5 levels of AI systems and how you can utilize them

AI seems to be able to do it all. But what do we actually mean when we talk about ‘AI’? For one person, it’s a chatbot; for another, a programming assistant or even a virtual colleague. The differences between these forms are significant, and that’s exactly why it’s important to understand where we stand now – and where we’re headed.

Last year, OpenAI shared a roadmap that helps with this. Five levels of AI systems, each with its own characteristics and applications. This will teach you how to implement AI in every step of your business processes and in every department.

In this article, you’ll discover:

• The five AI levels from OpenAI, from chatbot to CEO
• What each level can (and cannot) do
• Concrete examples to illustrate
• How you can implement AI in your own organization

The 5 levels of AI systems

In 2024, OpenAI provided a unique glimpse into their internal roadmap: five levels that illustrate how AI gradually transforms from smart assistant to self-operating organization. Each level is a building block toward Artificial General Intelligence (AGI): AI that is as versatile, creative, and independent as a human. According to Sam Altman, CEO of OpenAI, that’s the goal on the horizon.

The five levels of AI according to OpenAI:

1. Level 1 - Conversational AI: AI that can communicate human-like and fluently. Think about chatbots and voice assistants like ChatGPT and Siri. Smart, but still dependent on your input.
2. Level 2 - Reasoners: AI that can analyze and solve complex problems, comparable to the reasoning level of a PhD student. Here, AI begins to reason truly independently.
3. Level 3 - Agents: Not just thinking, but doing. This AI takes initiative, executes tasks over longer periods, and works in the background for you – without needing your guidance for every step.
4. Level 4 - Innovators: This is where it gets exciting: AI that comes up with new ideas. From creative content to innovative solutions that didn’t exist before. No longer a smart follower, but a true innovator.
5. Level 5 - Organizations: The final destination: AI that functions as a complete organization. From strategy to execution. Think about AI running a whole company without human management.

Level 1 - Conversational AI: AI that talks to you

We’ll start at the level everyone knows by now: AI that answers questions. Think of ChatGPT, Google Gemini, and Copilot in your Office tools. But also smart speakers like Alexa or Google Assistant, and chatbots on websites fall under this category. This AI understands language, presents itself in a friendly manner, and can help you write texts, emails, or scripts, for example. Smart? Definitely. But it’s not truly independent. This AI is usually limited to answering your questions or following simple instructions based on what it knows.

Picture this as a handy intern who can quickly look something up or create an initial draft but needs to be instructed on every request.

Marketers mainly use Conversational AI for content production, brainstorming, or SEO inspiration. The AI creates the initial draft, and as a marketer, you can further develop it. Ideal if you’re facing writer’s block and need a push forward. Other well-known examples include adding a chatbot to your website that answers customer questions 24/7 or one that recommends specific products in your webshop. Developers, in turn, use it for simple code snippets or explanations regarding frameworks.

Conversational AI is a prime example of how ‘ordinary’ AI has become. Models like GPT-4 and the all-around model GPT-5 can seamlessly chat with you about a variety of topics, and they also remember previous conversations you’ve had with them. But it’s not yet truly thinking alongside you – you remain the director.

Level 2 - Reasoners: AI that thinks along

From here, things get more interesting. Reasoners do more than provide answers – they can analyze, reason, and solve complex problems. Comparable to a subject matter expert.

Well-known reasoning models include OpenAI’s GPT-o3 and o3-pro, and now also GPT‑5 Thinking, which are specifically trained for advanced reasoning. These systems can handle complex logic, plan over multiple steps, and understand why something works or doesn’t. If you ask, ‘Compare the performance of our three campaigns, calculate the ROI per channel, and suggest three optimizations,’ a Reasoner will not only provide an answer but also explain the underlying calculations and substantiate the advice.

OpenAI’s GPT-4 is also an example of a Reasoner. Although, this model is more of a jack of all trades than one specifically used for reasoning.

In practice, this means AI can think along with strategy, planning, or analysis. You might use Reasoners to:

• Evaluate marketing campaigns based on data and suggest A/B tests
• Analyze user feedback and identify trends
• Check code for logic and make suggestions for improvement
• Strategically contribute to product development or pricing

This is AI as a sparring partner. You’re not working for AI, but with it.

Level 3 - Agents: AI that executes tasks

And now we arrive at the point where we currently stand: Agents. AI systems that not only think along but also take action themselves. You give them a goal (‘Prepare a quote and email it to customer X’), and the agent plans the steps, executes actions in tools, adapts if something doesn’t work, and provides feedback. It doesn’t wait for you to give a new prompt but works step by step and independently towards the goal.

That goes beyond automation. Where an automation does something based on ‘if X then Y’, an agent chooses its own path. It thinks along, decides independently, and works until the goal is achieved. However, what we often see online now is ‘merely’ an automation. In an automation tool like n8n, you set up a workflow that retrieves data, passes it to an AI with a prompt, and then the AI does something with it automatically. Still smart and very handy, but not a true agent. While an automation throws an error the moment something deviates from the script, an agent searches for a solution itself. It doesn’t follow a fixed pattern, but thinks and acts independently.

OpenAI is a major player here. With the recent introduction of OpenAI Agents in ChatGPT, you can easily set up your own agent that executes tasks independently. For example, for customer communication, onboarding, or data analysis. You set the goal, and the agent handles it – without you needing to guide every step.

With an AI agent, you can do a lot. Think about:

• An agent that manages your marketing campaign. You give it a goal (‘Maximize the number of conversions for product X this month with Y budget’), and the AI executes it. It writes and tests ads, adjusts bids, reallocates budget, and reports back.
• Not a simple chatbot that just answers questions, but a proactive support agent that solves complaints on its own. It reads incoming messages, checks customer data, performs diagnoses independently, responds empathetically, and resolves the issue.
• An agent that helps developers: from automatic testing to bug fixes and drafting and executing update plans.
• A personal AI assistant that manages your inbox, schedules appointments, and drafts and sends emails for you.

Just imagine how much time this would free up. Sounds great, right? But we’re not there yet. Although tools like OpenAI Agents are surprisingly close.

Level 4 - Innovators: AI that innovates

Until now, AI systems mostly did what you asked. But at this level, AI will come up with unique ideas on its own. Not based on a prompt, but by discovering new opportunities and hypotheses and providing solutions that have never been thought of before.

Where creativity was previously always attributed to humans, we are now seeing the first examples of AI Innovators changing that. DeepMind (Google’s AI research arm) uses AI to discover new mathematical formulas and algorithms. Innovators are also deployed to develop new drugs or discover more efficient materials used to optimize batteries, for instance. Or in the art world to discover entirely new styles. Not by combining existing styles but by coming up with something entirely new that has never been seen before.

What can you do with this? Well, Innovators can also be used in the business world to discover new products or business models based on market data and customer needs. Besides coming up with ideas, it also works out how to make and market them best. Or optimize business processes by outlining an entirely new process that no human consultant has ever thought of before.

Essentially, Innovators recognize patterns or techniques that aren’t obvious. They eventually arrive at unique solutions and ideas. Think of it as an innovation engine that challenges you. You determine the direction, AI shows routes you hadn’t considered.

Level 5 - Organizations: AI as an organization

This sounds like a distant future, but work is already underway: AI that not only executes a task but runs a complete organization. The AI does not take on the role of one team member, but is a leader, manager, and employee all in one. In theory, an AGI could set the company’s goals and strategy, make financial decisions, manage personnel and resources, and carry out daily operations across all departments. All without human intervention.

It all sounds great, but in practice, we are still far from that. What we are already seeing are business components supported by AI: HR for screening CVs, planning, and logistics to optimize processes and conduct various analyses in different teams. AI is getting better and better, and as it develops further, we come closer to fully autonomous AI organizations.

But then the question arises: if AI can someday run entire companies, what will be left for us? The answer: Plenty. Because it’s not about replacing but transforming. AI takes over repetitive work, does the analyses, optimizes processes, and ticks off standard decisions. You? You focus on what AI (yet) cannot do: applying domain-specific knowledge, checking for nuance and impact, having a sense of context, making moral judgments, and connecting with people.

What’s more: those who deploy AI wisely gain time, energy, and quality. Research from MIT shows that knowledge workers who use tools like ChatGPT are up to 40% more productive. Not by working harder, but smarter. Less drudgery, more impact.

Collaborate with AI or get left behind?

AI won’t just take over your job. But if you do nothing with it, the chances are high that someone else will do your job faster, smarter, and cheaper – with the help of AI.

The art is not to become ‘AI-proof’ but to start working AI-powered. Use Conversational AI to gather ideas and communicate. Deploy Reasoners to analyze complex issues. Let Agentic AI take care of the boring repetitive work. And engage Innovators for fresh perspectives and new solutions. This way, you make room for what energizes you: strategy, creativity, and human connection.

Work won’t disappear; it will change. Your role will shift from executing to directing, from coming up with ideas to improving together. Tomorrow's winners are not those who defeat AI, but those who collaborate with it.

And yes, the tools are already here. AI is now at Level 1 and 2, with the first agents around the corner. Smart teams are already using AI today to work more efficiently, innovate, and stay ahead of the curve.

So whether you’re sharpening your marketing strategy, designing a new product, or pondering the future of your company: see which level of AI can help you. Because those who learn to collaborate with AI now will continue to make a difference.