Has The AI Revolution Reduced The Value Of An MBA?

As a recent MBA graduate, I have come across a specific question a little more often than not: “Has the AI revolution reduced the value of an MBA?” Artificial Intelligence is now in the news more than ever, especially since the release of OpenAI’s ChatGPT. The way businesses function has adapted to the use of artificial intelligence (AI) across a variety of industries. As AI technology continuously evolves and finds more applications in our daily lives, it also questions the relevance of specialized education, such as an MBA. Through this article, I will attempt to explore this question in depth and discuss how the AI revolution has impacted MBA education and its value.

Unless one has been living under a rock, AI is a rapidly evolving technology that holds the potential to revolutionize the way we have traditionally conducted business. Not only does AI provide insights and support the fundamental decision-making process, but it can also carry out a plethora of ordinary tasks. But is that significant enough to replace employees? There is a quote gaining widespread popularity on the internet relevant to this topic: “AI will not replace your job, but a person using AI certainly will”.

One of the most significant value add-ons of an MBA degree is its focus on strategic decision-making. Over the course of an MBA, students are imparted with diverse knowledge and skills, and trained to navigate through complex business challenges. While the possibility that an AI-based tool might offer organizations pertinent insights, it is ultimately the responsibility of the company executives to assess the data and make tactical judgments. Students who complete an MBA program graduate with the ability to collect and analyze data, spot important trends, and develop effective business strategies based on the insights gained from the data. As AI becomes more prevalent in business operations, so does the need for individuals who can interpret and make strategic decisions based on data.

However, it cannot be ignored that some aspects of an MBA program may become lose their relevance as AI becomes more prevalent. For example, analytical skills were once considered to be cutting-edge, however, they may become obsolete as AI becomes more advanced. AI can easily automate such tasks and reduce the dependency on human input considerably, but it can't take the place of the critical thinking and strategic decision-making abilities that are crucial for corporate executives – something MBA students are immersed in during their course. Furthermore, AI cannot replicate the interpersonal skills and emotional intelligence needed to manage teams and build relationships with clients, which are key components of business education. What this translates into is that MBA programs need to evolve to stay relevant in the age of AI.

On the flip side, the evolving AI technology also paves the way for new jobs and career opportunities – specifically in the area of AI management. As companies increasingly rely on the blooming AI technology, there is a growing demand for individuals who can manage and optimize these technologies. MBA graduates with a strong understanding of both business operations and AI can play a crucial role in leading digital transformation and innovation within their organizations. They can use their knowledge and expertise to identify AI opportunities, manage AI projects, and optimize AI performance to drive business growth and success. As a matter of fact, many leading business schools are now expanding their curriculum to include courses on AI and machine learning to meet this demand and to prepare students for the future.

But what about ethics?

The integration of AI into business operations raises important ethical questions, including issues related to data privacy, bias, and transparency. Almost every scaled business has a large databank about its customers and often includes sensitive information. When integrated with AI, this data can be used for profiling customers for harmless activities such as targeted advertising but can have a much larger agenda, such as discriminatory profiling.

Another ethical issue is the potential for bias. AI-based models are tutored extensively on historical data and trained to extrapolate their learnings into the present and future. More often than not, this historical data can be exceedingly biased owing to the global affairs at that point. For example, a lot of data used to train an AI-based model might be from periods of global recession, such as 2008. The solutions provided by such an AI-based model to modern-day problems would have a high likelihood that they will be oriented to avoid recession-like consequences in hindsight.

There have also been concerns regarding the risk of AI exacerbating existing social and economic inequalities. If AI-based tools are not designed and applied inclusively, it holds the potential to reinforce pre-existing societal prejudices and worsen the gap between various socioeconomic classes. This makes it an unnegotiable requirement for businesses to acknowledge the impact of ‘biased’ AI on marginalized communities and take the necessary steps to ensure the fair and equitable use of artificial intelligence that is in the best interest of all communities.

Business schools can provide a platform to equip students with the tools and knowledge they need to cope with these ethical challenges, including knowledge of the legal and regulatory environment around AI, the creation of ethical AI frameworks, and the promotion of an ethical decision-making culture. It is worth noting that business schools are already adapting to the changes brought on by the AI revolution. Many programs are incorporating AI and machine learning courses into their curriculum, and some are even offering specialized MBA programs in AI and technology management.

Summing Up

While AI poses a threat to jobs in certain fields by rapidly automating processes, it is still in a nascent stage that requires human intervention. The development of AI also creates new jobs in various fields, that are suitable to be filled by MBA graduates who have been trained to analyze business scenarios holistically. MBA professionals have the high-order critical thinking, strategic decision-making, and interpersonal skills, that cannot be matched by artificial intelligence, at least not in the near future.