More Prospective MBAs Prioritize AI

Interest in AI has surged among prospective MBAs, according to this year’s GMAC Prospective Students Survey. 

Globally, 40 percent of respondents selected AI as an essential topic (29 percent in 2022), and in the U.S., 34 percent (22 percent in 2022) did. Millennials were more likely to express interest in AI (44 percent, globally) than Gen Z (38 percent), which the report notes is consistent with millennials’ stronger interest in the tech sector. And men (42 percent) were more likely than women (37 percent) to deem AI essential.

Below, we highlight a few business schools that are integrating AI coursework into their MBA programs. 

American University’s Kogod School of Business: Kogod recently announced that they were undergoing a “makeover” to integrate AI skills and concepts throughout the school’s curriculum, operations, and philosophy. This includes bringing in experts from the private sector to ensure faculty and staff have the training and knowledge they need. Additionally, starting in Fall 2024, every student will learn how to use AI as a tool for business deliverables, as well as to navigate AI platforms. 

Carnegie Mellon’s Tepper School of Business: The school considers the use of AI and preparing students to engage with this technology as a key component of future-preparation. With faculty already involved in the research and development of AI tools, the school has also sought to embed it within the student experience. Tepper offers new courses specific to AI, and has also integrated AI content into existing courses in other topics, such as ethics. 

Johns Hopkins Carey Business School: Carey has included a mandatory AI class in its core curriculum for all FT MBA students since 2021. The course, Data Science: Artificial Intelligence, includes three main components: a foundation in the math and technology underscoring AI, a computational foundation (python), and instruction on using AI for business insights. 

Related: Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology

A ChatGPT3 Passed a Wharton Operations Exam. A Professor Reviews the Implications on the MBA Degree.

ChatGPT3 has been all over the news recently. In the past few weeks, researchers have announced that it performed within passing range on the three components of the U.S. Medical Licensing Exam, and a recently published paper claimed that it received a B/B- grade on a Wharton MBA-level operations exam. 

The fact that the bot passed the exam is not overly surprising, but some of the findings in Wharton Professor Christian Terwiesch’s paper titled, “Would Chat GPT Get a Wharton MBA? A Prediction Based on its Performance in the Operations Management Course,” are. While the bot handled basic operations management and process analysis questions extremely well, Terwiesch emphasized that the bot made some fairly simple calculation errors within the exam. 

“Chat GPT at times makes surprising mistakes in relatively simple calculations at the level of 6th grade Math,” he wrote. He continued on to note that these errors can become, “massive in magnitude.” Additionally, he noted that the current version of the ChatGPT3 could not handle more advanced process analysis questions, such as those that include multiple products or demand variability, and that having “a human in the loop” proved meaningful. When a human expert provided a hint, not only was the bot adept at correcting itself, but it was able to learn so that the hint was not necessary in later iterations. 

Professor Terwiesch also provided his view of the implications that the technology may have on the MBA degree itself. Rather than expressing concern, he thinks the bot could afford students and professors an additional learning resource, specifically in developing necessary leadership skills in critical evaluation and the assessment of alternatives. 

“MBA students are preparing for leadership positions, in which they will have to make managerial decisions based upon actions brought to them by ‘consultants, co-workers, and direct reports.’ Using the bot to generate plausible, well-presented (although possibly incorrect) alternatives in response to a scenario can provide students with meaningful experience in evaluating alternatives,” he said.  

Read the whole paper, including the additional implications, here.

Related:

• STEM-Designated MBA Programs are on the Rise

• Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology

More MBA Programs Offer Admissions Accommodations to Laid Off Tech Workers

A number of business schools are joining Northwestern’s Kellogg in offering special admissions accommodations to the tens of thousands of recently laid off tech workers. 

MIT Sloan will extend its Round Two deadline from January 18th to February 23rd for recently laid off tech employees. Applicants will still need to submit the full application, including GMAT/GRE scores. 

Indiana Kelley is offering laid off employees an application fee waiver, and highlights that they offer GMAT/GRE waivers to all applicants (in any round) with a strong past academic record that includes the successful completion of quantitative coursework. Upcoming application deadlines are January 5th, March 1st, and April 15th.

UC-Berkeley Haas is offering any applicant who has been laid off in the past six months (regardless of industry/location) an application fee waiver for the full-time MBA program, as well as an extension for the Round Two application deadline from January 5th to February 2nd. 

NYU Stern announced that it will waive entrance exams for the one-year Andre Koo Technology and Entrepreneurship MBA program (May 2023 start). Upcoming application deadlines are January 15th and February 15th.

Related: Kellogg Waives Standardized Test Requirement for Laid-off Tech Employees

Kellogg Waives Standardized Test Requirement for Laid-off Tech Employees

Greg Hanifee, Associate Dean of Degree Programs and Operations at the Kellogg School of Management at Northwestern University, announced earlier this week that Kellogg will waive the standardized test score requirement for any Round Two applicants impacted by the recent, wide-scale tech industry lay-offs. Noting the vast impact of the lay-offs as well as Kellogg’s “long heritage of acting with empathy and valuing collaboration,” Hanifee laid out the specifics of the program:

• This test waiver is geared for individuals recently laid off from the tech industry and only applies to Round Two applicants. 

• Those eligible can apply by providing their transcripts, resume, and a completed application (including a brief essay on their most recent role, as well as how Kellogg’s MBA program will advance their transformation). 

• The waiver extends to all Kellogg Full-Time Programs including their One-Year, Two-Year, MMM (a dual degree with the McCormick School of Engineering), and MBAi (a joint degree with the McCormick School of Engineering), as well as their Evening and Weekend Programs.  

Hanifee stipulates that Kellogg will not be able to accept everyone who applies using the waiver, as applicants will still have to meet the rigorous acceptance criteria.

Related: Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology 

STEM-Designated MBA Programs are on the Rise

In March, Fordham University’s Gabelli School of Business announced that its full-time MBA received STEM designation for all students entering in Fall 2022 and beyond. The announcement is the latest in a trend of full-time MBA programs securing or pursuing STEM designation, according to a Kaplan/Manhattan Prep business school admissions officer survey published earlier this year. Among 91 full-time MBA programs surveyed, 22 percent of admissions officers said that their programs currently hold STEM designation, a sharp uptick from 13 percent in 2020.  An additional 23 percent said that their programs are pursuing the designation. The remaining 55 percent said that they are not currently pursuing, and have no plans to pursue STEM designation. 

STEM designation is particularly relevant for MBA programs hoping to attract international/non-citizen students who plan to pursue post-graduate careers in the United States. Graduates of STEM designated programs receive an additional 24 months to work in the country, without an H-1B visa, as well as the customary 12 months after graduation. For domestic and international students alike, the demand for STEM-trained graduates is projected to increase over the next five years. The U.S. Bureau of Labor Statistics projects demand for STEM jobs will grow 13 percent by 2027. Additionally, average wages in STEM are higher than those in non-STEM fields. 

Brian Carlidge, Kaplan’s Vice President, explained the uptick in the designation among some programs, as well as others’ hesitation. “Earning a STEM designation is a trend that is catching on quickly, especially among the top ranked MBA programs. For less competitive programs, adoption has been steady, but a lot slower. While the process for business schools to secure STEM designation is not a quick or easy one, and perhaps many smaller programs don’t have the bandwidth to do so, not being STEM-designated may put them at a distinct recruitment disadvantage. For many applicants outside the United States, it will be the differentiator,” he said.

Current STEM Offerings in the Top 15 MBA Programs (2023 U.S. News & World Report):

1- University of Chicago (Booth): Full-time (FT) MBA

1- University of Pennsylvania (Wharton): Six majors in FT MBA: Business Analytics; Business Economics & Public Policy; Business, Energy, Environment & Sustainability; Operations, Information & Decisions; Quantitative Finance; Statistics

3- Northwestern University (Kellogg): FT and Evening/Weekend MBA programs, MBAi, MMM

3- Stanford University: FT MBA and MSX 

5- Harvard University: FT MBA Management Science track

5- Massachusetts Institute of Technology (Sloan): FT MBA

7- Yale University: FT MBA Management Science track, MAM Management Science track, Master’s degree in Asset Management

8- Columbia University: FT MBA

8- University of California Berkeley (Haas): FT and Evening/Weekend MBA programs

10- University of Michigan (Ross): FT MBA Specialization in Management Science

11- Dartmouth University (Tuck): FT MBA Management Science and Quantitative Methods track

12- Duke University (Fuqua): FT MBA Management Science and Technology Management (MSTeM) track

12- New York University (Stern): FT MBA (two-year), Andre Koo Technology and Entrepreneurship MBA

14- University of Virginia (Darden): FT MBA Management Science track

15- Cornell University (Johnson): Management Science MBA (one and two-year), Tech MBA, MPS in Management, MPS in Management-Accounting Specialization

Related blog: Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology

Trends in Business: MBA Programs Prepare Students for Leadership Roles in Technology

Technology is changing. And so are the demands of the leaders and professionals in the field. Recently, zdnet, a technology-focused news and research site, published an article describing the changing demands of leaders and employees in technology. No longer, the article states, is technical proficiency enough. Technology can no longer exist as a stand-alone function, but must be thoroughly integrated into the business. And tech practitioners must be able to take a broader perspective that includes a thorough understanding of other business functions and how technology fits in amongst them to drive the organization’s mission. “It's important to start to learn about finance, business processes, and other strategies that make up how your product or solution comes full-cycle for your organization," said Nag Vaidyanathan, Chief Technology Officer at Duck Creek Technologies. "How you collaborate with other functions is critical to the results you can achieve." 

Haluk Saker, a Senior Vice President at Booz Allen Hamilton, notes that the speed of technological change is such that professionals and managers need, "…problem-solving skills versus language-specific skills. IT professionals should focus on learning, disrupting the status quo, and continuing to gain skills across different domains that interest them. This type of professional, with an innate curiosity and an aptitude to grow as a leader and influencer, is the one that will be able to face tomorrow's toughest challenges head-on," he said.

MBA programs are at the forefront of understanding transformation in the technology industry and a number of leading schools (noted below) now offer shorter, and more focused Tech MBA programs. They include core requirements in technology, in addition to typical MBA requirements in general management and leadership. 

• Johnson Cornell Tech MBA: This is a one-year MBA conferred by the Johnson Graduate School of Management. Graduates will have a full understanding of the startup and tech ecosystems, and will be prepared to manage product teams, and lead tech companies.

• NYU Stern Andre Koo Tech MBA: This is a one-year STEM-designated MBA program conferred by NYU Stern. Graduates will be qualified to join startups and mature tech companies at the forefront of innovation and technology, and will be prepared to accelerate their careers in technology or start their own businesses. 

• Northwestern Kellogg MBAi: This is a joint degree between Kellogg and the McCormick School of Engineering. Graduates will be prepared for careers in tech operations, analytics, and innovation leadership. 

• Foster School of Business Technology Management MBA: This is an 18-month work-compatible MBA conferred by the Foster School of Business, and is designed to prepare graduates to accelerate or re-direct their careers, or to start their own businesses.

• IE Business School Tech MBA: This is a one-year MBA conferred by the IE Business School. It is designed for students who want to develop their career in the technology sector or in tech-centric job roles, and who seek to become fluent in the language of business and technology. 

In addition to the Tech MBA program options, many schools are integrating technology tracks into their full-time, two-year MBA programs. Fordham University’s Gabelli School of Business has created a secondary concentration in blockchain, and Georgetown’s McDonough School of Business now offers a handful of classes in fintech and crypto. And this trend is just getting started. Recently, several elite schools have announced incoming investments earmarked for building out technology initiatives. The USC Marshall School of Business received a $5 million gift to establish the Digital Assets Initiative, which will establish new curriculums and research opportunities in cryptocurrency, NFTs, and blockchain. Similarly, Harvard Business School is establishing the “D3” Institute to promote collaboration and research in digital and technology, data science, artificial intelligence and machine learning, and design thinking. And University of Pennsylvania’s Wharton School recently received an anonymous $5 million donation (in bitcoin) that will support the Stevens Center for Innovation in Finance, which focuses on fintech research and education.