Business Schools Embrace AI: Moving Beyond Resistance to Integration
The advent of artificial intelligence is rapidly transforming higher education, particularly within business schools. Initially met with caution and even resistance, AI is now being integrated into curricula and operations at an accelerating pace. Schools are leveraging AI to enhance teaching, provide automated feedback, and streamline grading processes, signaling a significant shift in how knowledge is delivered and absorbed.
One of the pioneering institutions in this trend is the University of Toronto’s Rotman School of Management. Professors Joshua Gans and Kevin Bryan spearheaded the development of “All Day TA,” an AI assistant designed to support students. After ChatGPT’s launch, they trained the tool on lecture materials, and were impressed by its accuracy. The AI assistant fielded 12,000 queries during a 12-week semester.
“The bot can answer instantly, instead of students having to wait for a response. And they could ask questions that might be embarrassing in front of a room full of people,” recalls Gans. This initiative has resonated, spreading to around 100 universities and business schools, including within leading online MBA programs. The financial impact is minimal, costing a mere $2 per student, and it takes only minutes to set up. Gans reports overwhelmingly positive feedback from faculty, with the cost so low that some have funded it themselves.
AI’s influence extends beyond teaching assistance. Business schools are also incorporating automated feedback systems and AI-driven grading tools. Leah Belsky, vice-president of education at OpenAI, points to the potential of AI to personalize education. However, concerns remain regarding the potential for AI to exacerbate existing inequalities if some students are more adept at utilizing the tools than others.
“AI could exacerbate inequalities if only some people know how to use it powerfully while others don’t,” Belsky says. To bridge this gap, universities should integrate AI into their teaching, providing faculty and students with the necessary skills. Implementation, however, comes with a financial cost; as Matt Robb of Deloitte explains, “Implementing and maintaining these systems requires significant investment.”
The impact of AI extends beyond the classroom, as employers now expect business graduates to be AI-literate. In response, business schools are integrating AI into coursework while simultaneously teaching students when to rely on it and when human judgment is essential. Paul Kett of PwC underscores the importance of critical thinking in an age of contested information.
“The harder skills to develop are critical thinking and the ability to identify and test for disinformation,” Kett notes. “In a world where contested information is becoming more common, those interdisciplinary skills become that much more important.”
Not all educators are convinced of AI’s benefits. Some, like Vishal Sachdev from Gies College of Business at the University of Illinois at Urbana-Champaign, caution against “cognitive offloading,” where students may rely too heavily on AI, rather than engaging deeply with the material.
While the implementation of AI in teaching faces debates, the prevailing sentiment among educators is shifting. Eric So of MIT Sloan School of Management acknowledges AI’s benefits:
“I’ve seen a mixture of surprise, enthusiasm, concern and trepidation,” he says.
So sees AI’s benefits in brainstorming, updating course materials, and creating interactive tools.
Christian Terwiesch, a professor at the Wharton School, found that ChatGPT outperformed some students in his operations management class. The initial concerns have given way to an understanding that the benefits of AI outweigh the risks. As PwC’s Kett notes, “We’ve very rapidly gone past that, to seeing lots of positive opportunities for higher education.”
