Will AI Kill Higher Education?

The Age of AI and The Changing Landscape of Master’s Programs

Artificial Intelligence (AI) is rapidly reshaping global education, and business master’s programs are no exception. With AI-powered tools now integral to many business school curricula, the question looms: will AI replace a traditional master’s education, or simply transform it?

How AI is Already Shaping Business Education

Since late 2022, when ChatGPT emerged onto the internet and into the classrooms of business schools worldwide, the race has been on to incorporate and harness the power of AI. 

According to the Graduate Management Admission Council (GMAC), almost 80% of business schools worldwide now use generative AI tools in creating course materials and teaching students. Furthermore, the demand to address the strategic use of AI at a management level has led to shifts in the volume of applications for business master’s programs addressing the future needs of a workplace infiltrated by AI technologies.

In response, prestigious schools like Harvard Business School launched AI-native courses such as “Generative AI for Business Leaders”. Meanwhile, Stanford and Wharton have invested heavily in AI & analytics initiatives to stay ahead of the curve and maintain the value of their master’s and MBA programs.

At the University of Toronto’s Rotman School, the “All Day TA” chatbot handled over 12,000 student queries in a semester, and now around 100 schools use it globally.

Alternative programs such as Quantic and Abilitie utilize AI to offer personalized tutoring, adaptive simulations, and self-paced business education via platforms like Coursera or LinkedIn Learning. 

The impact of AI is already evident in the higher ed realm, but how will it affect the future value of master’s and MBA programs? 

Could AI Replace Traditional Master’s and MBA Programs?

The Role of AI in Curriculum Design and Personalized Learning

AI systems can craft adaptive learning paths, automate grading, generate lesson plans and quizzes, and tailor content to individual needs, as shown by The IMD GPT, described as “an MBA in your back pocket”. Likewise, the “Artificial Intelligence‑Enabled Intelligent Assistant” framework developed at Cornell University and similar adaptive AI platforms are enabling personalized learning experiences in master’s-level programs in ways never before seen. 

Leah Belsky, vice-president of education at OpenAI, highlights the rapid academic uptake of AI tools in the higher education space. “One of the most powerful applications of AI is to advance educational outcomes,” she explains. “It can make learning more personalized, timely, and engaging.”

Can AI Match the Human Element of Business Education?

AI excels at data-driven feedback but struggles with mentoring, networking, ethical judgment, and leadership cultivation. Critics voice concern about “cognitive off‑loading,” whereby students rely on AI assistants to think for them rather than engaging deeply themselves. 

Additionally, the crux of higher education is to develop critical thinking skills, something which may be “outsourced” to ChatGPT and the like, therefore delaying or hindering the long-term benefits of a master’s education.

On the other hand, programs such as IMD’s MBA in Switzerland are leveraging AI as a ‘sparring partner’ to test theories, build leadership skills, and narrow down decision-making, without replacing the human element in those processes.

Human-supported AI will prove to be the ultimate apex of human intelligence, business education, and AI algorithms. Therefore, the implementation of AI tools and programs will require a human element woven into every facet of their design and use. 

Advantages and Challenges of Integrating AI into Master’s Education

The advantages of AI in higher education are proving to be on par with the wider global adoption of AI programs such as ChatGPT. However, the challenges remain as unanswered questions. As AI evolves at a breakneck pace, and the first cohorts of AI-generation master’s graduate, we are just beginning to see the outcomes of using generative AI in higher education. 

Recurring themes of ethical use of AI, inherent bias, cost, and the erosion of fundamental master’s-derived skills, such as critical thinking, are concerning. Let’s review some of the advantages and disadvantages of AI integration in master’s and MBA programs.

Advantages

• Efficiency & speed: Systems like Syntea reduced study time by around 27 % while boosting comprehension.
• Freeing human bandwidth: At Stanford, AI lets students skip routine tasks and instead engage in creative discussion, strategy, and leadership exercises.
   
• Career readiness: Employers expect post-grads to be AI-literate, and programs are adapting to teach business-AI fluency. A prime example is the new Data Science and AI for Leaders (DSAIL) course at Harvard Business School. The driving philosophy behind the program is that the next generation of leaders will collaborate with AI, not just use it.

Challenges

• Ethical and bias risks: Algorithmic transparency and fairness remain unresolved issues in AI-based assessment and feedback systems. 
• Cost and infrastructure: Schools face costly investments in AI systems and must train faculty and staff accordingly. Developing curricula, teaching materials, and faculty to meet the constantly shifting parameters of AI can outprice some schools. It is already creating a clear divide between educational institutions.
• Erosion of critical thinking: Overreliance on AI may impair students’ analytical capabilities if not properly counterbalanced.

The Future of Higher Education in an AI-Driven World

Business education is evolving into a symbiosis of AI and human insight. The possibilities for AI to enhance or erode postgraduate studies will depend on who is in charge. Maintaining a “human in the loop” will ensure that an AI-driven future will be quality-controlled and ethical.

Curriculum Co-designed by AI and Humans

Programs like Harvard Business School’s AI‑native MBA course emphasize working alongside AI agents for decision-making and strategy development.

Hybrid Formats

Modular, stackable degrees such as IMD’s Executive Master in AI & Digital Business Transformation reflect the new AI-enhanced paradigm.

Sustained Value of Master’s and MBA Credentials

The postgraduate degree remains a high-ROI credential. Average starting salaries are around US$120,000 in 2024, and growing demand for leaders who can integrate AI into strategy.

AI and Higher Ed: Augmentation and Allyship

AI is not here to kill higher education; it’s here to reshape it. The future of AI in higher education institutions lies in augmentation, not replacement. In an AI-powered world, prospective students should focus on programs that teach both foundational leadership skills and AI literacy. Candidates who partner with AI, rather than let it supplant them, will emerge as the best prepared business leaders of tomorrow.

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