AI and its impact on MBA education

By Supriyo Ghose

Over the past decade, there has been a remarkable surge in the adoption of AI across businesses and governments worldwide. AI leverages data from specific problem domains to generate diverse models for effective decision-making. For example, today’s banks can accurately predict customers likely to default on loans, thereby preventing NPAs and expensive recovery processes. Retailers can utilize real-time store traffic data to make pricing decisions while customers are still in the store. Logistics companies optimize transportation routes with real-time traffic information, and healthcare product companies plan their offerings based on a deeper understanding of population health issues. These are merely a fraction of the vast array of AI applications, with novel use cases emerging daily.

The increasing use of AI has had a huge impact on the MBA sector, requiring it to adapt to the changing corporate landscape. Business schools have started to incorporate AI-focused content into MBA programs over the last decade, recognizing the requirement for graduates who are adept in both business strategy and technical advancements. This modification teaches students how to use AI-driven insights for better decision-making and operational excellence, bridging the gap between traditional practices and current approaches.

The Gartner report 2023 accentuates a significant shift in the MBA landscape, with AI-enabled productivity and efficiency gains altering the skill set required of graduates. As artificial intelligence (AI) tools grow more prevalent in positions such as marketing, finance, and business research, MBA programs have incorporated AI-focused coursework to provide graduates with the skills needed to extract useful insights from complicated data. This keeps MBA graduates competitive in a job environment where AI literacy is becoming increasingly important.

Business schools have incorporated artificial intelligence (AI) tools such as Tableau for data visualization, IBM Watson for analytics and natural language processing, Salesforce Einstein for customer relationship management, Google Analytics for understanding customer behavior, RapidMiner for predictive analytics, and programming languages such as Python and R for data analysis, demonstrating how AI improves decision-making and business strategies in MBA programs. The report emphasizes the symbiotic relationship between business acumen and technological competency, highlighting the necessity for MBA graduates to capitalize on AI’s revolutionary potential in order to flourish in emerging markets.

Beyond the accolades, the impact of Generative AI transcends traditional boundaries. Financial giants like Goldman Sachs have projected that the widespread adoption of Gen AI will contribute significantly to the global economy, with an estimated boost to the global GDP by an impressive 7%. This projection underlines the far-reaching economic implications that Generative AI can bring forth.

Impact on Education

The rapid adoption of AI raises the question: what is its impact on B-school education?

The following points may be worth pondering:

AI as a part of the MBA curriculum: As business operations get transformed by AI, it is imperative for budding managers to learn how to use AI for their roles. An MBA with a strong understanding of AI will have a natural advantage over one who doesn’t – they will be able to make decisions better and faster. So B-school faculty worldwide are including AI in their MBA curricula in a big way – to discuss what data can be used for solving a particular problem, which AI models can be used, and how to interpret the results.

Growing Business AI Integration: Businesses are increasingly embracing AI to streamline operations, improve decision-making, and gain a competitive advantage. As artificial intelligence (AI) technologies become more common and accessible, MBA graduates will be required to have a comprehensive understanding of AI’s uses and implications in many business tasks.

Data-Driven Decision Making: AI analyses and generates decisions based on tremendous quantities of data. MBA graduates who are skilled in AI may use data-driven insights to make informed and strategic business decisions, resulting in increased performance and growth.

AI and Marketing: AI is important in marketing because it enables personalized consumer experiences, targeted advertising, and efficient lead generation. MBA graduates with AI expertise can develop creative marketing strategies that connect with customers and propel businesses forward.

AI-Driven Innovation: Artificial intelligence (AI) is a catalyst for innovation, allowing firms to develop new products, services, and business models. MBA graduates who understand the potential of AI will be at the forefront of creating disruptive change and identifying new growth possibilities.

Enhanced Efficiency and Cost Savings: AI can automate repetitive jobs and optimize processes, resulting in increased corporate efficiency and cost savings. MBA graduates with AI experience may assist organizations in streamlining operations, optimizing resource utilization, and increasing profits.

AI in financial and Investments: From robo advisors to fraud detection and anti-money laundering, AI is transforming the financial industry. The emergence of blockchain as a shared, immutable ledger offers another new application for AI. MBA graduates who are well-versed in AI can traverse this changing terrain, making smart financial decisions and leveraging AI-powered portfolio management solutions.

AI in Operations and Supply Chain: AI, coupled with Internet-of-Things (IoT), has the potential to improve supply chain operations by providing automated warehouses, improved vehicle tracking and transportation, intelligent demand forecasting, and logistics. MBA graduates with AI skills can help to improve supply chain processes and customer satisfaction.

AI and Business Strategy: Future business leaders must understand the impact of AI on company strategy. MBA graduates with AI skills can develop strategy strategies that leverage AI technologies and produce long-term competitive advantages.

AI for Customer Relationship Management: Artificial intelligence-powered chatbots, sentiment analysis, and customer analytics are revolutionizing customer relationship management. MBA graduates who understand AI can create powerful customer-centric strategies that drive brand loyalty and happiness.

Addressing Ethical and Social Implications: As AI becomes pervasive, businesses face ethical and social challenges. MBA graduates with AI proficiency can address these concerns, ensuring responsible AI adoption and building sustainable and ethical business practices.

Human issues surrounding AI: Although AI is celebrated for its numerous groundbreaking applications, it does raise a set of concerns, with job loss being a primary worry. However, it is important to acknowledge that AI will also generate new employment opportunities or reshape existing jobs by incorporating AI elements. An illustrative example is the transformation of the cab driver’s role, where they now follow GPS-prescribed routes and charge fares determined by the AI system.

The “new age” MBA will possess the acumen to envision innovative applications of AI as the technology advances and its capabilities expand. For instance, a business analyst overseeing requirements for a retail website will be adept at identifying AI features that can enhance personalization and offer improved recommendations. AI is also overly reliant on the quality of the input data for learning, which leads to issues such as inaccuracies, fakes, biases, etc.