B-Schools: Aligning with a foundational change

If you ask someone with more than an ordinary understanding of current global trends which, apart from the geopolitical glitches the world faces today (tariff wars, the Russia-Ukraine strife, heightened tension in the Gulf and South Asia, China’s growing assertion in critical minerals sharing), has the potential to exert a sweeping impact, chances are they will point to artificial intelligence (AI). In fact, they may even go so far as to say that while other factors may have a marginal to modest influence in shaping the world’s future, AI’s impact will be far more pervasive, with a basic intrinsic attribute of permanency attached to it.

This dynamo behind the digital age is widely perceived as the greatest catalyst for change humanity has encountered in recent times, and its adoption is evident across every sphere of life. This technology, commonly defined as one that “enables computers and machines to simulate human learning, comprehension, problem-solving, decision-making, creativity, and autonomy,” is increasingly connecting with ordinary people. Its foundational form is now maturing, with recent breakthroughs in generative AI – the fourth generation since inception. Machine learning–driven problem-solving, as facilitated by generative AI, can create original text, images, video, and other content.

There are several sectors where AI’s influence has made inroads swiftly, and education figures among them (along with healthcare, finance, media and entertainment, and retail) – particularly higher education, which is intrinsically linked to creating professionals for the future. Some of the best-known top-tier institutes have created robust AI-led curricula and teaching methodologies that are regarded as trailblazers in their own right. These include AI research opportunities offered by the Massachusetts Institute of Technology (MIT); the state-of-the-art AI lab at Stanford University; machine learning courses initiated by institutes such as Carnegie Mellon University, Harvard Business School, and Harvard University; the development of an AI-powered chatbot called Pounce to assist students in myriad ways by Georgia State University; and Tsinghua University’s (China) AI educational framework, among others.

Quite predictably, when it comes to India, the onus of embracing what many call a tectonic shift in higher education vis-à-vis AI rests on the IITs, IIMs, and other leading private institutes regarded as symbols of domestic higher education excellence. And they once again seem to be showing agility in making a mark in this sphere, which is not just a momentary trend but will be at the fulcrum of creating efficient and more resilient professional managers of the future.

“Business schools today are operating in a rapidly evolving environment shaped by shifts in technology, industry expectations, and learner aspirations. One of the most defining developments is the integration of technology and analytics across management education – AI, data science, and digital transformation have moved from being specialised domains to becoming core components of business curricula,” observes Bharat Bhaskar, Director, IIM Ahmedabad.

But these are still early days, and the approach to the enormous task of consistently improving AI tools is still not clear. “AI integration has now become a central objective of business transformation, and business schools are working to understand how this disruption will impact global enterprises. The challenge is that the full implications of AI are still unfolding; no one truly knows how it will pan out,” says Prof A Vinay Kumar, Pro Vice-Chancellor, SRM Institute of Science and Technology (SRMIST).

AI’s growing prominence, meanwhile, may be aggravating other critical issues. For instance, sustaining quality faculty has long been a challenge, and now an added dimension has emerged – their preparedness to adopt the gifts of this fundamental shift. Challenges in placements remain visible, and there is a new narrative being voiced more vocally now: the mental health of students. In the recent past, there has been a spate of unfortunate incidents involving students of higher studies, raising the pressing question: do we even have the wherewithal to deal with this, or is the drive to hand out degrees in progressively higher numbers the only motivation? The growing penetration of online courses and the changing equation between academia and industry are also critical points of debate.

AI alignment: The current scene

Let us first examine at the trends in higher education and management studies in India in terms of their willingness to align with AI. In recent months, there has been a spate of surveys and reports (usually micro in nature) underlining how AI has begun to influence higher studies in India as well. A recent knowledge report unveiled by FICCI–EY Parthenon titled Future-ready Campuses: Unlocking the Power of AI in Higher Education calls it a foundational force shaping the sector’s future.

The report comprises a survey conducted in 2025 on AI adoption in higher education institutes and underlines that 57 per cent of them already have an AI policy in place, while 40 per cent are currently working on one. It clearly states that within higher education circles, it is well understood that the adoption of AI is no longer an issue to deliberate upon. Rather, the debate centres on how to embrace it more responsibly and inclusively, in sync with the broader goals set by India’s National AI Mission. The report emphasises that higher education institutes should focus on AI literacy across curricula and boost research efforts in collaboration with industry. At the same time, it suggests upskilling of faculty and calls this critical.

“Findings from another survey, conducted by MBAUniverse.com covering 235 faculty members from top B-Schools and released in September, indicate the prevailing mood in management studies. “AI is transforming education and must be harnessed responsibly to strengthen both teaching and learning. It gives every student the freedom to ask questions and helps overcome barriers of language, background, or geography. The Government of India is committed to its use in teaching and learning, from schools to higher education and research, ensuring that technology complements human intelligence and supports the larger goal of Viksit Bharat,” said Vineet Joshi, Secretary, Department of Higher Education.

Major takeaways include that 51 per cent of faculty members are convinced AI adoption will improve student learning. About 20 per cent said it is too early to assess, while 18 per cent believed it could have an unfavourable impact. “The findings reveal that faculty are using AI in research and teaching, while applications in curriculum development are growing steadily. Administrative tasks and student assessment remain emerging areas, highlighting opportunities for structured support and capacity building,” the survey noted. Only 7 per cent of faculty users are currently considered experts.

Among AI tools used in management studies, ChatGPT emerged as the most useful for teaching, followed by Microsoft Copilot and Perplexity. The survey also highlighted challenges in using generative AI for research, primarily related to ethics, accuracy, reliability, and the absence of clear regulatory guidelines.

Action in top-tier quarters

It is a well-known fact that the Indian higher education sector is one of the largest in the world and, according to estimates, comprises more than 65,000 institutions, over 43 million students (over four lakh enrol in management studies every year), and around 1.6 million teachers. The National Education Policy (NEP) 2020 has been quite a cornerstone, with a clear focus on improving the gross enrolment ratio (GER) to 50 per cent by 2035, up from 25 per cent in the late last decade. Speak to anyone in the Indian educational sector, and they will tell you that the policy has set in motion an emphasis on both quantitative and qualitative goals.

Of course, overall, among the two sets of changes, the outcome is currently more visible on the quantitative side, with the policy aggressively promoting multi-disciplinary institutes. Unsurprisingly, many institutes with traditional specialisations in other streams are now also offering management studies. Overall, the number of institutes offering management programmes (across various formats) is estimated at more than 5,000.

“You may find management institutes across the country, but it is only the top 500 that are forward-looking. They are showing agility in adopting AI,” observes Dr Harivansh Chaturvedi, Director-General of IILM.

So, it is a select group of top-notch institutes making tangible moves, and there seems to have been a fair bit of action in those quarters. “AI is deeply integrated into our curriculum and leadership development initiatives, helping students think critically about technology-driven decision-making. Within our flagship two-year and one-year MBA programmes, students have the opportunity to choose from a wide range of courses that explore AI applications across various domains,” says Bharat Bhaskar. The country’s leading management institute is paving the way with courses such as AI and Human Resource Management, GenAI for Marketing, Big Data Analytics, AI/ML in Financial Services, and Leading Digital Transformation.

 “We’ve built a proprietary AI tutor that students use throughout their program. Not for grading or administrative tasks, but as an actual learning partner directly linked to the coursework, so it enhances the learning process,” says Nitish Jain, President, SP Jain School of Global Management. Practically, this means a student stuck on financial modelling at 2 AM receives personalised guidance immediately, not 3 days later during office hours. A student preparing for interviews can practise actual interview questions 20, 40, or 60 times with the AI, receiving feedback after each attempt. Yes, this requires effort, but it is the most effective way to succeed in the interview.

According to Prof Debashis Chatterjee, Director, IIM Kozhikode, digital and AI tools are now integral to management education, much like IT literacy and spreadsheet modelling were in the previous decade. The classroom of the future is already here: one in which Microsoft Office is giving way to creative and analytical platforms like Canva, Gamma, and GravityWrite, and where Perplexity and ChatGPT are being used more extensively than traditional search engines for research and ideation. “Our online and hybrid learning systems now incorporate interactive AI capabilities that enable students to engage dynamically with video lectures, summarising long sessions, generating flashcards, and gamifying their learning experience. Moreover, AI helps automate routine and repetitive tasks across academic processes, freeing both students and faculty to focus on areas where human creativity and judgement add greater value,” he explains.

Similarly, IIM Indore, in the second year of its flagship Post Graduate Programme, has rolled out contemporary electives and workshops on Artificial Intelligence, Generative AI, Ethical Leadership, and Sustainable Business Practices, enabling students to explore the intersection of technology, strategy, and responsible management. “The response from students has been overwhelmingly positive. Importantly, these thematic updates are not limited to one programme. Concepts such as Generative AI and Sustainability are now embedded across multiple cohorts, including PGP, PGP-HRM (Human Resource Management), EPGP – our One-Year MBA, and PGPMX-Weekend MBA,” explains Himanshu Rai, Director, IIM Indore. “Digital transformation also requires faculty upskilling. We actively encourage our faculty to integrate AI tools, analytics software, and digital case pedagogy into teaching,” adds Subir Verma, Director, Fore School of Management, highlighting changes on the other side of the spectrum.

While much of the action in top-tier institutes reflects increasing AI orientation, consolidation of earlier thematic initiatives is also visible. “Design Thinking and Sustainability have been made integral components of the curriculum to align education with the evolving socio-economic landscape. Our pedagogy encourages students to apply management concepts to contemporary societal challenges, thereby creating a deeper connection between business education and social impact,” says Sebastian George, SJ, Director, XLRI, Jamshedpur.Design Thinking and Sustainability have been made integral components of the curriculum to align education with the evolving socio-economic landscape S George Director, XLRI JamshedpurDesign Thinking and Sustainability have been made integral components of the curriculum to align education with the evolving socio-economic landscape S George Director, XLRI Jamshedpur

Other significant trends

Apart from AI, there are, of course, other initiatives which raise qualitative standards. IIM Ahmedabad, for instance, recently launched the Madan Mohanka Centre of Excellence in Case Method of Learning to strengthen case-based teaching and learning at the institute and beyond. The Centre’s efforts include training faculty to excel as instructors and supporting the development of cases through funding, research assistance, reviewing, and editing. Additionally, it undertakes research on case pedagogy and promotes the case methodology by organising conferences, workshops, and short-term Faculty Development Programmes. SRM Institute has set up a Financial Analytics Lab equipped with a Bloomberg Terminal, integrated into finance and strategy courses.

Emphasis on executive courses and training programmes continues to rise as a top priority, as IIMs increasingly seek to sustain themselves amid declining government funding. “We have a robust executive programme portfolio in which we train personnel from top PSUs and private sector companies. We have generated around R42 crore through such programmes,” says Bhimaraya Metri, Director, IIM Nagpur, and veteran educationist. Some leading PSUs sending personnel to the institute include IOC, Coal India, HPCL, and SAIL. The institute will soon begin building a satellite campus in Pune, which has received regulatory approvals.

Most leaders at top MBA institutes acknowledge that placement pressure has increased in recent years. However, the tide is now turning, with demand rising in specific sectors. “Placement pressures that were visible last year have moderated. Corporate recruiters are now more interested in candidates’ digital skills and ability to generate new ideas. Better training, programmes to develop new skills, and direct engagement with tech-enabled industries have all helped achieve stronger placement statistics at leading B-Schools,” says Prof Sanjeev Prashar, Director-in-Charge, IIM Raipur. Yet, even as representatives claim normalcy is returning to campus placements – their traditional calling card – the consistent average salary growth seen in pre-Corona days remains subdued for most graduates.

Leading educationists also note that the new era has somewhat reshaped the role of alumni, the permanent flag bearers of any top institute. “In the AI era, alumni are not merely donors or recruiters; they have become strategic partners, mentors, and co-creators. Alumni are increasingly involved in co-teaching specialised modules, mentoring AI- and tech-focused student projects, and providing real-life data sets and case studies for classroom application. They also play a crucial role in pre-placement engagements, hackathons, and incubation support. This evolving partnership ensures our students remain industry-ready and helps the institute stay at the forefront of AI-driven management education,” observes Himanshu Rai.

Another key trend is the growing number of management degree aspirants, including working professionals and students in remote areas, opting for online programmes. This trend, accelerated by the post-Corona era, has triggered both online and blended modules, and proponents cite it as the beginning of the ‘democratisation of higher studies’, including management, even though quality remains a topic of debate. But with its significant cost competitiveness and the flexibility it offers course pursuers, stakeholders affirm that online education is expanding rapidly and has become a vibrant feature of the sector. “With higher studies taking the driving seat, online education is growing at a robust 25 per cent CAGR. The total online education and training market, which had stood at Rs13,200 crore, is poised to exceed Rs41,000 crore by 2028. Management studies remain a top-demand stream in the online education sector,” notes Dr Sanjay Salunkhe, Chairman, Jaro Education. “Unlike in the West and other developed markets, where online courses may be available for half the cost of offline modules, here in India they may cost just 12-15 per cent of the campus experience,” he adds. Jaro, a leading online higher education company recently listed on the stock market, collaborates with some of India’s premier IITs and IIMs. Purists, however, remain sceptical that online MBA courses will produce a talented pool of young professionals, suggesting they are more beneficial to those already working, adding an enhancement to their CVs.

‘Mental health of the student’ has become a buzzword in higher education circles, amid rising incidents of suicide and other serious crimes involving students. This trend is pervasive, and some leading management institutes have unfortunately been in the news for these very reasons in recent years. “Emotional breakdowns don’t begin in the counsellor’s office; they begin in how our institutions are designed. When rankings, grades, and peer comparisons dominate identity, when failure is equated with shame, and when faculty are untrained to recognise distress, students internalise silence,” says Richa Singh, Co-founder & CEO, YourDOST, a counselling service for students. Senior representatives in management education acknowledge the seriousness of the issue. “Mental health has undoubtedly emerged as a major challenge. We have designed management courses based on our scriptures to help students address it,” notes Dr Arvind Sahay, Director, MDI Gurgaon. 

The immediate future

With AI taking the driving seat alongside other critical issues, the key question now is how the landscape will evolve in the near to medium term. “The next 5 years will involve significant adjustments to the challenges posed by AI. You must remember that consistent improvisation and upgradation in AI offerings will be necessary,” says Dr Chaturvedi. This is a crucial concern: the stable platforms and teaching patterns of the recent past are now becoming outdated for top-tier players. Curriculum changes will become frequent – an exception in the past –to keep pace with the demands of mainstream industry and business. “The accelerated pace of curriculum revision will involve modular design (smaller, swappable units that can be updated frequently) and dual assessment paths (traditional and AI-augmented deliverables will co-exist until we are comfortable moving entirely to AI-augmented assessments),” emphasises Dr Himadri Das, Director General, IMI, adding that retiring obsolete cases or concepts annually and replacing them with fresh ones tied to contemporary industry problems will be another imperative.

Rakesh Joshi, Vice-Chancellor of the Indian Institute of Foreign Trade, underscores that improving experiential learning will be a key priority for management academia, where outcome measures will shift to create professionals for the future. “Traditional case studies are now being complemented with hands-on experiences, including live consulting projects, collaborations with real-world companies, and simulations reflecting the unpredictability of real markets. The emphasis is on cultivating practitioners, ie, the goal is to create ‘doers,’ not just ‘knowers.’”

There is complete unanimity among sector veterans that, with the foundational changes rapidly unfolding through AI, testing times lie ahead. Leading educationist Nitesh Jain of SP Jain School of Global Management warns that the challenge may be more significant than commonly perceived. “The financial model is breaking. The second challenge is irrelevance. When AI can teach concepts better than mediocre professors, and employers are building their own training programs, business schools have to answer: what purpose do we truly serve? And here’s the thing: legacy won’t save you. Even prestigious brands are vulnerable if they rely solely on reputation rather than continuously proving value.” Clearly, for stakeholders in management education, aligning with AI may prove easier said than done.