The world of management education is undergoing a radical revolution thanks to the advent of artificial intelligence. This meteoric leap into the future of how business leaders acquire knowledge and hone their craft came in November 2022 with the launch of ChatGPT, an AI-powered language model by the US research organization OpenAI. As of January 2023, ChatGPT had become the fastest growing consumer software application in history, with over 100 million users.
Roughly two months after its iconic launch, Mack Institute Co-Director Christian Terwiesch captured the attention of colleges and business schools with a white paper titled “Would ChatGPT Get an MBA from Wharton? ” The answer ? A resounding yes!
Despite being an early release – ChatGPT3 – with more limited capabilities than it has today, the software was already showing promise in automating tasks typically performed by highly paid knowledge workers, including analysts, managers and consultants. He could handle professional tasks such as writing computer code and preparing legal documents.
Terwiesch evaluated ChatGPT’s performance on an MBA operations management final exam. He found that although ChatGPT excelled at concepts and explanations of basic operations case studies, it sometimes made surprising errors in simple calculations. He struggled with advanced multi-product process analysis questions involving stochastic effects such as demand variability. However, he found that ChatGPT could effectively correct itself after receiving cues from human experts.
Overall, he rated ChatGPT’s performance on the exam worthy of a grade of B to B-, and he wrote: “This has important implications for business school education, including the need to exam policies, curriculum design focused on human-AI collaboration, opportunities to simulate real-world decision-making processes, the need to teach creative problem solving, increased productivity teaching, and more.”
The future is here
According to investment bank Goldman Sachs, AI systems like ChatGPT could lead to the automation of up to 300 million jobs worldwide: “The impact of AI on the job market is expected to be significant , but most jobs and sectors are only partially exposed to automation and are therefore more likely to be supplemented rather than replaced by AI ».
It is in this complementary nature that the true value of AI lies. Although AI should not take students’ exams or write their assignments, ChatGPT suggests that MBA students can use AI tools for data analysis, research, immersive simulations and to improve their skills in soft skills.
Antromorphic’s Claude.ai said it could act as a virtual tutor or high-level thinking partner for MBA students, adding that: “By adopting AI-powered platforms, students can gain a competitive advantage, develop essential analytical and decision-making skills, and prepare more effectively for the AI-driven business world of tomorrow.”
Reactions from business schools
A 2023 report from the Graduate Business Curriculum (GBC) Roundtable found that most business school faculty and professionals recognize the importance of integrating generative AI into the business school curriculum, despite some concerns and challenges . It found that 74% of business schools teach generative AI as a curriculum topic, although only 15% said it was taught significantly or comprehensively.
One in five business schools offered dedicated courses on generative AI, with common themes such as introduction to AI, ethical/legal implications, and industrial innovation. Despite this, only 30% reported having a university or faculty policy on the use of generative AI, while only 20% had a formal group working on such a policy.
The report foresees a gradual and cautious integration of generative AI into business school curricula as higher education institutions recognize its importance, despite challenges related to integrity, misinformation and training needs .