In a world experiencing rapid innovation and global technological development, management education's role must be to develop business talents that meet the needs of both the present and future. With AI reshaping the world at an unprecedented speed, business schools must adapt to remain competitive and better cultivate innovative managers who can adapt quickly to change.
In this article, CEIBS President Wang Hong shares insights and research on AI's effects on management education, and highlights CEIBS' determination and concrete actions in keeping pace with this unstoppable new technological wave.
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The new "Era of Intelligence"
When tracing waves of technological development throughout human history, from the industrial revolution to the information age, it is evident that a new technological transformation is already underway. A vast number of cutting-edge technologies - integrated circuits, AI, 5G/6G communication technology, cloud and edge computing, blockchain technology, virtual reality (VR), and augmented reality (AR) to name but a few - have been identified as having feasible and practical potential for generating commercial value. Alongside the development of frontier technologies such as quantum technology, all-solid-state battery technology, gene editing technology, and more, these developments are becoming increasingly intertwined and integrated, accelerating the evolution of businesses This in turn is having a profound impact on almost all industries and reshaping every aspect of global economies and societies, becoming a new focus of international competition and a new engine of global economic development.
Out of all today's emerging technologies, AI is undeniably the most attention-grabbing. The concept of AI was first proposed in the 1950s and experienced its first wave of development over the following 20 years. However, due to its relatively slow development of genuine "intelligence," it faced much criticism and eventually fell into a trough. It was not until the 1980s, as computing power improved, that AI technology experienced a new surge in development. Through the 2010s, with the rise of internet technology and the widespread application of deep learning (DL), AI entered a stage of more rapid advancement and with the development of large language models exemplified by ChatGPT, has in recent years finally reached widespread daily usage. This has brought Artificial Intelligence Generated Content (AIGC) into the lives of ordinary people across the world, including trough education, posing new challenges that need to be addressed by management education institutions.
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Artificial intelligence's challenge to management education
The AI revolution is having a significant and far-reaching impact on many sectors of the economy and society. When it comes to education, traditional teaching models that focus on knowledge output are being challenged and business schools, which are closely connected to the real business world, are thus confronted with unprecedented obstacles. In short, they must reckon with the fact that the disruptive reshaping of the production and organisation of enterprises, from corporate governance and business philosophy to strategic development and business ethics, is bringing unique and unparalleled challenges to business managers.
Business school professors strive to provide entrepreneurs with a comprehensive learning experience that combines theory and practice. However, if they fail to actively explore current AI tools and are insensitive to the profound changes that they bring to industries, they run the risk of their insights becoming out of date in a rapidly changing world.
In a 2023 survey of 163 business school deans in 43 countries, 87% said they would step up efforts to recruit professors who are proficient in digital teaching skills. 84% considered digital transformation a crucial priority in their school's development strategy, while 66% said they would offer more online or hybrid non-degree courses. These responses highlight the importance that business schools are beginning to place on professors mastering digital technology and implementing digital teaching.
We are entering an age of "AI+," in which AI and other cutting-edge technologies are merging and integrating deeply into the fabric of the business world - the need to update management knowledge and cultivate new types of management talent have therefore never been higher. The transformation of the management education paradigm and the innovation of the management education model demand from business schools a spirit of change, innovative thinking, cultural diversity, and cross-disciplinary integration. These changes in mindset cannot be accomplished overnight, but will be the result of sustained efforts over time.
We must also bear in mind that while AI technology has made knowledge acquisition easier than ever before, it has also given rise to new ethical and moral concerns related to the supervision and evaluation of learning outcomes, academic integrity, fairness and justice in the use of AI tools, as well as privacy and security. It is imperative for all relevant parties to recognise and address these challenges. A UNESCO survey revealed that less than 10% of schools and institutions have issued application specifications regarding the use of generative AI, highlighting that there is still a long way to go in this area.
AI technology is driving a disruptive reshaping of business schools' development models, training systems, and teaching and research activities. In response to these challenges, major business schools around the world have already begun embracing AI as a vital component of management education. Harvard Business School has launched a Business AI Basics course, Columbia University has established a Centre for Artificial Intelligence in Business Analytics and Financial Technology, and Oxford Saïd Business School, INSEAD, and other institutions have all launched courses related to AI. AI education has become an essential part of management education, and "AI+ Management Education" is now a critical trend in the field.
Moreover, when combined with other cutting-edge technologies such as virtual reality (VR), augmented reality (AR), and the metaverse, AI has the capability to create specific simulated scenarios to provide students with customised and immersive learning experiences. A recent study by PwC has shown that using new technologies such as AR in teaching has advantages over classroom teaching or online education in terms of efficiency, emotional connection, and teaching effectiveness. Findings included hat students were more focused, and that their speed of learning increased up to four times, thus making them more likely to apply what they have learned to directly to business practice.
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Opportunities for management education
AI presents business schools with many challenges. However, as the Western proverb goes, "every cloud has a silver lining." There are many reasons to view the impact of rapidly changing technology on the education industry positively.
"Education 4.0": A powerful catalyst for the evolution of management education
The development of advanced technology has become an important "battlefield" in the relationship between of major global powers. As we enter the era of digital learning and "Education 4.0", many countries are eager to respond and layout a path for "AI+ Education" to promote future learning and talent cultivation.
Last April, the World Economic Forum (WEF) released a report titled Shaping the Future of Learning: The Role of AI in Education 4.0, which used case studies to highlight the importance of integrating AI technology into education. The report emphasises that to fully unleash the transformative potential of AI in education, enterprises, governments, educators, and all sectors of society must take collective action.
The United States is a global leader in AI technology, particularly in the development of large language models. In May 2023, the US Department of Education Office of Educational Technology released a report titled Artificial Intelligence and the Future of Teaching and Learning. The report proposes responses to the challenges posed by AI in terms of learning, teaching, assessment, research and development, and outlines a far-sighted vision for a future education system that can both promote learning with automation and intelligent technology and protect human agency.
In the UK, "learning-led industry" has become a characteristic of AI technology development. In late 2023, the UK Department of Education released a report on The Application of Generative AI in Education, stating its supportive stance on the use of generative AI, including large language models such as ChatGPT, to improve education and reduce teacher workload.
The European Commission, meanwhile, has set specific goals for digital transformation by 2030 and a vision for achieving "digital sovereignty" in its 2030 Digital Compass: The European way for the Digital Decade released in 2021. The 11 goals listed in the paper include digital education and talent building, enterprise digital transformation, and more.
Singapore, committed to building a "Smart Nation," launched the "AI Singapore (AISG)" programme in 2017 to promote development in the fields of education and talent cultivation. The country's "National AI Strategy", launched in 2019, further increased research investment and support for artificial intelligence education to build a lifelong education AI-supported system across all age groups.
China's Ministry of Education launched the "Artificial Intelligence Innovation Action Plan for Higher Education Institutions" in 2018, which aims to establish Chinese universities as global leaders in AI innovation and talent development by 2030. The plan not only injects momentum into innovative education reform, but also supports China's industrial upgrading and economic transformation.
The world is clearly placing great emphasis on the transformative power of new technologies, particularly AI, in education, creating a favourable environment for the development of management education.
The urgent need for business and industry transformation: A wide-open field for management education
In today's world, generative AI technology is increasingly integrated into every aspect of economic and social development, with an unprecedented speed, scope, and depth of impact. Generative AI technology alone can boost global GDP by an estimated 7% and increase global productivity by an estimated 1.5% over the next decade. While many businesses are embracing AI, they also face a growing demand from employees for retraining to adapt to the increasing use of generative AI technology. For students preparing to enter the workforce, the need to master cutting-edge technology and strengthen interdisciplinary learning is also rising.
According to the Graduate Management Admission Council, about 40% of business students hope that their schools will offer AI-related courses. In China, this ratio doubled from 19% in 2022 to 38% in 2023. As a result, how management education responds to and embraces AI technology to better meet the learning needs of business managers and a younger generation of students has become a common challenge.
The call to cultivate compound talent: A new challenge for advancing management education
To thrive in this current wave of cross-disciplinary and integrated technological advancement, personal intelligence and corporate strength is no longer enough. The era calls for multidisciplinary talents who possess both vertical and horizontal skills. Vertical compound talents are proficient in AI theory, methods, technology, products, and applications, while horizontal compound talent understand the intersections of AI with other disciplines including economics, society, management, and law.
The traditional approach to business education is clearly inadequate in meeting the demand for these compound talents. Business schools must integrate emerging technologies with various disciplines. CEIBS' own highly experiential Real Situation Learning Method™ offers an effective model for combining knowledge creation and dissemination with current business practices, highlighting the unique value of business schools and empowering students while also reshaping talent training, professional systems, and learning experiences. While this model poses higher demands on the teaching and research systems of business schools, it also presents an opportunity for them to become more competitive.
In the future, business schools must incorporate AI and cutting-edge knowledge of emerging industries into their teaching. While emphasising the integration of the industrial, innovation, discipline, and talent chains, they should also cultivate students' innovative thinking, including their independent learning abilities, problem-solving abilities, critical thinking, digital thinking, and adaptability to future changes. Research paradigms must also adapt to technological innovation, strengthening the integration of "industry-education-research-application" and promoting interdisciplinary and integrated teaching and research with a forward-looking perspective towards the future.
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CEIBS takes the lead in AI-empowered education
CEIBS is taking proactive steps to cultivate future management talents with the digital capabilities and innovative thinking required to navigate the modern business landscape.
Encouraging interdisciplinary research in "AI-powered Enterprise and Management"
Interdisciplinary research is at the heart of CEIBS' teaching and research philosophy. One of four key research areas under our "2+4+X" interdisciplinary research framework is "AI-powered Enterprise and Management", focusing on modern technologies such as big data and AI while exploring the causes and consequences of technological transformation. The research area's goal is to explore questions about the impact of cutting-edge technological developments on business and society, with a particular interest in maximising the benefits of technology while minimising its negative impact.
The research area has brought together over 30 CEIBS professors from diverse disciplines to produce a series of groundbreaking results. With a focus on integrating AI-related content into teaching modules, the professors have developed a range of AI-related courses, including "AI-Powered Global Expansion: Building New Competitive Advantages," "AI and Machine Learning," "AI: The Next Frontier of Productive Forces," and more.
CEIBS' commitment to promoting change and driving innovation extends beyond the classroom, and the professors in this research area continue to actively empower entrepreneurs and help enterprises innovate.
Building bridges between AI and academia: The creation of integrated think tanks
In early 2024, the CEIBS Research Centre for AI and Management Innovation was established to embody the intersection of AI and business management. By integrating internal and external academic, government, and alumni business resources, the centre focuses on the impact of AI on business management and industrial development, covering two major research directions: "AI Industry and Ecological Development" and "Sustainable Development of Enterprises and Industries in the AI Era."
To concentrate more resources and support the innovative application of AI technology in the field of marketing, the research centre further established the CEIBS AI and Marketing Innovation Research Lab, which focuses on AI-related practices, trends, and challenges in marketing, drawing on the experience and knowledge of CEIBS marketing professors to empower enterprise innovation and development.
Harnessing an AI task force to innovate management operations
To stay ahead of the interdisciplinary integration of AI, CEIBS has established an AI Task Force consisting of representatives from various academic disciplines. The task force's duties include assessing the challenges business schools face in all AI-related areas, identifying future needs for resources and teaching, enhancing the AI capabilities of all CEIBS staff, formulating AI policies suitable for the school, and offering strategic AI-related advice to the school's leadership.
The creation of the AI Task Force will allow CEIBS to build a more comprehensive AI-related management and operation system, promote the deeper integration of AI into teaching and research, and better meet the talent needs of businesses and industries during their digital transformation.
In the face of snowballing AI development, CEIBS, as a leading business school, will continuously innovate in teaching, programme development, academic research, and knowledge creation. The school remains committed to cultivating a new generation of management talents who lead the way in innovation and are adept at harnessing today's most impactful and cutting-edge technologies.
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