In 1900, the Tuck School of Business, founded at Dartmouth College in New Hampshire, offered the first advanced degree in business: the Master of Science in Commerce, which was a predecessor of the MBA (Master of Business Administration).
Eight years later, the first MBA programme was launched at the Harvard Graduate School of Business Administration.
The next few decades saw the quick development of business education both in the US and abroad, especially in India. Soon enough, securing an MBA started becoming synonymous with climbing the corporate ladder and subsequently achieving professional success with high-paying managerial roles, which further led to the booming popularity of the course.
Even though the MBA is still one of the most popular courses globally, its allure and charm hinges on how the realm of business studies and its practitioners continue to adapt to the changing terrain of education, which is rapidly being dominated by Artificial Intelligence (AI) and Machine Learning (ML) tools and paraphernalia.
Analytics-driven learning approaches are fortifying the average MBA programme
From underlining the importance of case study-based learning in its heyday to increasingly focusing on practical industry applications and now integrating newer technologies such as AI, the MBA pedagogy has undergone a drastic transformation from the early 20th century to the present.
According to the Graduate Management Admission Council (GMAC) Corporate Recruiters Survey 2024, while only 26% of employers currently view AI as an essential skill for graduates, its significance is projected to grow exponentially over the next five years.
As a result, many international MBA programmes and allied courses at prestigious schools like Harvard Business School (HBS) and Wharton School of Business now emphasise AI-driven learning approaches, offering personalised education experiences that enhance strategic thinking, problem-solving, and leadership.
These programmes not only teach core business concepts such as marketing and financial analysis but also integrate AI's role in developing sustainable business strategies and supply chain management. For instance, the WP Carey School of Business at Arizona State University offers an AI concentration that focuses on data-driven insights and optimising decision-making processes.
Additionally, Northeastern University's MBA x Artificial Intelligence concentration includes foundational courses on AI technologies and their applications in business.
Why should business leaders be literate in AI and automation?
AI literacy includes a thorough understanding of AI concepts, technologies, and applications in practical situations, going beyond a fundamental understanding of AI. It enables company executives to make wise decisions that encourage innovation and growth while skillfully navigating the AI-powered environment.
Understanding the underlying algorithms, keeping up with the most recent developments in AI, and comprehending how AI may be incorporated into different business processes are all necessary. Leaders who are knowledgeable about AI may find areas for automation, optimise processes, and open up new corporate growth potential.
Since AI technologies are evolving so quickly, business executives need to commit to lifelong learning to stay current with industry and business strategy changes. Ignorance of these developments might result in a loss of competitive advantage, inefficiencies, and missed opportunities.
Leaders may enhance their AI knowledge and abilities through online courses, workshops, and certification programmes, which will enable them to make well-informed decisions and stimulate innovation. By interacting with AI specialists and joining industry networks, leaders may learn from experts and stay up to date on the newest trends and breakthroughs. These actions also promote collaboration and knowledge exchange.
AI-savvy MBA graduates are the future
Whether we like it or not, AI is here to stay, and key industries are increasingly leveraging AI to transform their operations. In finance, AI-driven analytics are used for fraud detection and gaining customer insights. In healthcare, AI assists with diagnostics and treatment planning, improving patient outcomes. The retail sector utilises AI for personalised shopping experiences and efficient inventory management.
In manufacturing, AI plays a crucial role in process automation and predictive maintenance, enhancing productivity and reducing downtime. MBA graduates equipped with AI knowledge and skills will be at the forefront of these advancements, driving innovation and shaping the future of business.
As AI's capabilities continue to grow, the job market for MBA graduates is becoming increasingly data-driven and analytics-focused. Employers are seeking candidates who not only understand core business principles but are also adept at leveraging artificial intelligence (AI) and computational technologies to drive innovation and efficiency.
MBA graduates will need to be well-versed in AI tools, machine learning, and big data analytics to secure jobs in the near future. The ability to interpret and analyse data is becoming essential for making informed, strategic decisions in today’s competitive business landscape. Furthermore, these graduates will be expected to apply AI to solve complex problems, optimise operations, and enhance customer experiences.
As AI becomes integrated into every aspect of business, professionals who can bridge the gap between data science and business strategy will be highly valued, positioning themselves as leaders in a technology-driven economy.
Artificial Intelligence is merely a tool, and how well it works depends on the user. While using AI to operate more intelligently and productively, MBA grads still have to understand that human judgment and strategic thought are indispensable.
(Abhimanyu Saxena is the Co -founder of InterviewBit, Scaler, Scaler School of Business & Scaler School of Technology. Views expressed are his own)