Management or Mastery: How Important Is AI for MBA Students?

 As the initial excitement around AI begins to settle, companies are now seeking to demonstrate how AI can contribute not only to their share prices but also to overall company growth. This growing expectation has led to a higher demand for AI skills from employers.

In response to this demand, business schools have swiftly integrated AI into their programs, offering courses, electives, and multidisciplinary projects focused on AI. MBA graduates are now expected to possess a conceptual understanding of AI so that they can effectively incorporate it into corporate strategy, showcase its value to shareholders, and drive business growth. Falling behind in acquiring AI skills is something that nobody wants.

When ChatGPT burst onto the scene in November 2022, there was a global rush to grasp and leverage this exciting new technology, particularly in the realm of business education. In the subsequent 15 months, business schools have rapidly embraced AI, driven by the desire to teach it, students’ eagerness to use it, and employers’ expectations for their workforce to master it.

Consequently, AI has become one of the most sought-after skills for MBA students. However, the level of proficiency expected from them remains a question worth exploring.

The growth of AI in management education is influenced by various factors beyond the fear of being left behind. Business schools have always adapted their offerings based on market demands, and it is increasingly evident in 2024 that the market now demands AI skills. According to the 2023 GMAC Corporate Recruiters Survey, 74 percent of employers consider AI and machine learning to be important skills for business school graduates. Moreover, a similar percentage believes that these skills will gain even more importance in the next five years. Business schools are simply responding to this demand.

For major companies, the motivations behind their interest in AI are more complex. While they also want to avoid falling behind, shareholder value has been a key driving force behind the AI frenzy. In 2023, simply expressing interest in AI was enough to boost share prices. However, in 2024, shareholders expect companies to demonstrate a clear AI strategy that drives company growth, not just short-term stock gains. This necessitates the identification of leaders capable of leveraging AI to fuel growth, and MBA graduates are seen as potential candidates for these roles.

Business schools have swiftly incorporated AI into their programs within the field of graduate management education. In just over a year, some schools have completely revamped their curricula to include AI. According to research from the Graduate Business Curriculum Roundtable, 74 percent of schools now teach generative AI as part of existing courses. For instance, the POLIMI Graduate School of Management in Italy requires all MBA candidates to use generative AI software for their admission tests, with the aim of fostering critical thinking and responsible use of AI tools.

Furthermore, business schools are not only integrating AI into their programs but also adopting a holistic approach to AI education. Initiatives like the Artificial Intelligence Initiative at IESE Business School encompass the integration of AI in programs and electives, faculty research, and engagement with policymakers. This indicates a shift from the initial AI boom to a more structured and comprehensive approach to teaching AI. As a result, the expectations for what MBA graduates should know about AI are becoming clearer.

While AI is a crucial component of business education in 2024, it is not necessarily a skill that MBA students must master. Rather than focusing on technical aspects, the emphasis is on management and understanding how AI can be strategically employed. Developing a clear conceptual understanding of AI technologies is considered fundamental. This knowledge should be complemented by an understanding of how AI can be applied across different functions within a business. MBA graduates are expected to possess a working knowledge of AI that allows them to incorporate its key concepts into an overarching business strategy and demonstrate how AI can drive company growth. Those who can successfully navigate this transition are likely to be highly sought-after in the next phase of the AI revolution.