Artificial Intelligence is no longer an emerging trend; it's a business imperative. India's AI market is set to cross $14 billion by 2027, and we already lead the world in AI skill penetration, according to NASSCOM. However, as our global reputation in AI capabilities grows, our management education system has yet to catch up.

There's a fundamental mismatch between where the industry is headed and how B-schools are preparing future business leaders. And the answer isn't simply to add a course or two on AI. The real question isn't what we're teaching — it's how we're building future-ready talent.

Management education needs a reset

AI is not just another domain to be slotted into a semester; it's reshaping how businesses run across functions. This requires a rethink of the traditional B-school model, which still leans heavily on theory, siloed disciplines, and outdated pedagogies.

Today's industry requires managers who can effectively integrate AI into supply chains, understand its implications for marketing, navigate its associated ethical dilemmas, and lead AI-augmented teams. But most graduates aren't getting that kind of exposure. Instead, they're learning about AI from textbooks while the technology is already transforming boardrooms.

The gap isn't just academic, it's systemic.

The Ground Reality: Promises vs Practice

India has made commendable strides at the policy level, and initiatives like Skill India and NITI Aayog's 'AI for All' are well-intentioned. However, in classrooms, especially those outside top-tier institutions, the infrastructure and readiness tell a different story.

Only about half of India's schools have access to basic internet. Many educators are still grappling with video conferencing tools, let alone embedding AI case studies into their curriculum. Even in management programs, we see a reliance on lectures and exams over real-world application and interdisciplinary thinking.

We discuss building AI leadership, but most students have never led an AI-enabled project or worked on cross-functional tech-business challenges. The result? A growing divide between the demands of industry and the output of our classrooms.

The path ahead: From AI-aware to AI-native

Scaler's own experience building future-ready tech and business talent shows that this kind of transformation is possible—and necessary. It's not about replacing management principles with Python code. It's about producing leaders who can think in systems, understand the role of technology in business strategy, and make informed decisions shaped by judgment.

The institutions that adopt this shift will shape India's position in the global AI economy. The rest will struggle to stay relevant.

This is not a call for incremental change. It's a call for bold rethinking. India doesn't just need more managers who are familiar with AI; it needs leaders who can lead with AI. B-schools must evolve from being content providers to becoming ecosystem builders.

The AI revolution will not wait for our education system to catch up. It's time we redesigned it to lead from the front.

(This article is authored by Abhimanyu Saxena, Co-founder, Scaler and Scaler School of Business. Views expressed are his own.)