AI in Business and Management: Why MBA students must embrace AI today

Artificial Intelligence is no longer just a tech trend—it’s a strategic business imperative. As India’s AI market surges, sectors from finance to healthcare are rapidly adopting AI tools to boost efficiency and innovation. For MBA students and institutions alike, adapting to this shift is critical. This article explores India’s AI evolution and why future business leaders must embrace AI-driven thinking to stay competitive in a data-powered economy. India’s AI revolution is reshaping the corporate landscape—and MBA programs must keep pace. From smart hiring tools to predictive analytics in manufacturing, AI is transforming how businesses function. For aspiring leaders, understanding AI is essential.

Artificial Intelligence (AI), once considered a concept of the future, has rapidly become a transformative force across global industries. From automating customer service to predicting market trends, AI is reshaping how businesses operate.

In recent years, the Indian business ecosystem has embraced AI at an accelerated pace. For MBA students, aspiring business leaders, this technological evolution signals one clear message: the importance of AI.

India’s AI growth story

According to a report by the India Brand Equity Foundation (IBEF), the global AI market, valued at US$ 59.67 billion in 2021, is expected to grow to US$ 422.37 billion by 2028. India’s AI market is projected to reach US$ 7.8 billion by 2025, up from US$ 3.1 billion in 2020, growing at a CAGR of 20.2%.

This surge has been driven by AI’s wide-ranging applicability across key sectors such as finance, healthcare, retail, manufacturing, and human resources.

Sector-wise adoption of AI in India

Finance and Banking:

Indian banks are using AI-based chatbots such as EVA and iPal to handle customer interactions. AI systems are also enhancing fraud detection and loan risk assessment, making financial operations more efficient and secure.

Retail and E-Commerce:

Companies utilize AI-driven recommendation engines to tailor shopping experiences. Inventory management systems powered by AI help optimize supply chains and reduce wastage.

Healthcare:

Startups are employing AI to detect illnesses like tuberculosis and breast cancer at early stages. AI is also enabling remote diagnostics through telemedicine platforms, connecting doctors with patients in rural and underserved areas.

Manufacturing:

With the government’s “Make in India” initiative as a backdrop, manufacturers are incorporating AI for predictive maintenance and automation.

Human Resource Management:

AI tools are revolutionizing the recruitment process. Platforms are use algorithms to match job seekers with openings more accurately. Performance management systems are also integrating AI to monitor employee productivity and engagement.

Courses on machine learning, AI-driven strategy, automation, and ethical AI are gradually becoming essential components of a modern MBA program.

Why MBA students must embrace AI

There are several compelling reasons why AI should be a core part of business education:

1. Data-Driven Decision Making:

AI equips managers with the tools to make faster, smarter decisions based on data analytics rather than intuition alone.

2. Enhanced Employability:

As per a report, AI and machine learning are among the most sought-after skills in the job market. MBA graduates with AI knowledge are significantly more competitive.

3. Start-Up Potential:

With government initiatives supporting AI-based innovation, MBA students with entrepreneurial aspirations can find ample opportunities in launching AI-driven ventures.

4. Ethical Leadership:

Understanding AI also means understanding its potential risks—bias in algorithms, data privacy concerns, and cybersecurity issues. Ethical training in AI prepares students to use technology responsibly.

Key AI Competencies for Business Students

To stay relevant, MBA students are encouraged to develop competencies in the following areas:

• Data analytics and visualization. • Machine learning and predictive modeling

• AI-driven decision-making. • AI ethics and governance

• Automation and process optimization tools.

These skills are increasingly becoming part of the job descriptions for roles in consulting, marketing, finance, and operations.

(The author is

a senior professional in the Education Industry)