By U Dinesh Kumar
Artificial Intelligence (AI) is increasingly becoming a pivotal force in shaping the global economy, driving innovation, and transforming industries. AI’s role in business is expanding in four significant ways: it fuels innovation, automates tasks, unlocks valuable insights for decision-making, and augments the workforce with AI-powered tools. A study by McKinsey Global Institute suggests that AI could contribute up to $13 trillion to the global economy by 2030, potentially adding more than 1.2% to global GDP growth annually. Furthermore, research by Manyika and Spence (2023) highlights that AI, particularly Generative AI (Gen AI), could fundamentally change how work is performed, affecting over two-thirds of jobs. This evolution calls for a shift in management education to prepare future leaders for an AI-driven world.
AI in B-School Curricula
Recognizing the growing importance of AI, many top B-schools in India have introduced specialized MBA programs focusing on AI and analytics. This shift aligns with the increasing demand for business leaders who possess both business acumen and expertise in AI technologies. Discussions with placement officers across Indian B-schools indicate that graduates with specialized skills in AI and analytics are in high demand, often securing placements more easily and commanding higher starting salaries compared to their peers with general management degrees. The anticipated transformation of the workplace, where AI is expected to augment a significant portion of jobs, underscores the urgent need for B-schools to integrate AI into their curricula.
The Debate on AI and Critical Thinking
A key debate within B-schools is whether to allow students to use Large Language Models (LLMs), such as ChatGPT and Google’s Gemini, in their coursework. Some fear that these tools might stifle critical thinking, echoing concerns from the 1970s when calculators were first introduced. However, history has shown that banning technology is rarely effective. Instead, integrating AI into management education could better prepare students for the future workplace. Research indicates that AI has the potential to significantly enhance productivity, even leveling the performance gap between new and experienced workers by accelerating on-the-job training. As AI continues to reshape industries, it should become a core component of management education, with dedicated courses in finance, marketing, supply chain management, and other disciplines.
Challenges in Finding Quality Instructors
Despite the clear need for AI integration, B-schools face challenges in finding qualified instructors to teach AI. There is a common misconception that AI is merely an advanced coding tool, but its potential to generate massive wealth and drive competition on a global scale goes far beyond coding. Indian B-schools must prioritize equipping graduates with the skills to leverage AI effectively, ensuring they are prepared to thrive in the evolving business landscape.
By incorporating AI into their curricula, B-schools can ensure that their graduates are not only knowledgeable about AI but also capable of using it to navigate and succeed in the rapidly changing business environment.
(The author, U Dinesh Kumar, is Dean of Faculty and Professor in the Decision Sciences Area at IIM Bangalore.)
