AI has progressed from a futuristic idea reserved for technology executives to a game changer in the world of organizational planning, employment, customer service, data management, operations enhancement, and decision-making. This means a lot for managers even if they don’t need to build Artificial Intelligence solutions. They should understand how Artificial Intelligence is changing the way people, processes, strategy, risk, and performance operate.
Higher education can no longer assume this responsibility. The educational models of business management are not enough to prepare students solely for traditional forms of leadership. Future managers should learn to operate in systems where humans and AI work together.
The question is no longer whether managers should understand AI. The real question is how quickly higher education can prepare them to lead in an AI-driven economy.
Management Education Must Move Beyond Theory
Management has always been built upon a foundation in leadership, finance, marketing, operations, strategy and organisational behavior. These fields still matter, and this is truer now than ever, since technology is rapidly influencing the way business works.
Nonetheless, just having theories doesn’t suffice. Managers must be aware of how automation influences business decisions in reality. How can one utilize automation without damaging trust among employees? How can one utilise data while thinking ethically? And how should leaders assess productivity when technologies enable employees’ work?
The Future of Jobs Report 2025 by the World Economic Forum states that technological transformation, which includes AI as well as information technology, is among the numerous important factors changing jobs and skills until 2030. This also implies that the need for analytical thinking, resilience, adaptability, leadership, and continuous education is increasing.
In other words, the management studies curriculum should be more practical. Students should be given case studies, simulations, real projects, and tasks that help them solve problems they would face in real life. They must know not just what can be achieved through AI but also learn how and when it should be done.
Managers Need AI Fluency, Not Just Digital Awareness
Using technology is not the same as understanding its implications from a business perspective. Most professionals can use AI applications for writing or analysing, or for any type of research or report creation. However, managers require a different level of proficiency.
AI fluency is knowing how the AI is utilized in choices; identifying areas in which biases can be introduced; understanding the impact of data quality on results; and the importance of human control in the process. In addition, to have AI fluency, one must know how to ask the right questions and identify the issue that needs to be resolved by the AI.
Research done in 2025 by the consulting firm McKinsey indicated that though many companies have begun spending on AI, only a small percentage of them believe they are proficient in utilising AI effectively. The report also states that leadership plays an important role in scaling AI in organisations.
This suggests a clear message for higher education that management programs have the duty to educate future managers to become effective communicators between technical specialists and business-oriented individuals.
The Human Side of AI Must Be Central
While AI represents a shift in technology, its consequences relate more to the human element. Employees are worried about the safety of their jobs. Workers have to upskill and acquire new competencies. Customers want fast service but also require trust and fairness. Leaders are forced to find balance between efficiency and empathy.
This is why higher education must place people at the centre of AI-focused management learning. Students need to understand change management, workplace culture, communication, ethics, and responsible innovation.
According to Microsoft’s 2025 Work Trend Index report, there is a growing trend of employees working together with AI agents in what is now called “frontier firm.” Furthermore, the report states that a growing number of managers are already thinking about how to manage hybrid teams involving people and AI systems.
The future will need managers equipped with adequate leadership skills. They should possess the skills to redefine the roles, ensure the training, mitigate fear, and create trust in a new system. A manager, who knows the AI but doesn’t care about people, is bound to struggle. A manager who cares about the people while avoiding the AI also risks lagging behind. The best leaders are able to combine both.
Higher Education Must Build Career-Ready Leaders
The managers entering tomorrow’s economy need more than a qualification. They need a mindset that helps them adapt across industries and career stages.
To implement this change, higher education needs to redesign their business learning programs. For example, courses should unite strategy and analytics, leadership and technology, and innovation and ethics. Also, students must take part in real-life business situations where AI can be one of the answers, but not the only answer.
It is also important that they learn what the industry demands. Guest sessions, employer-led projects and assignments resembling those in consultancy, internships, and mentorship related to career path help students understand how AI is used by various organizations. This helps make education more useful and gives more confidence to graduates when entering or moving along the career path.
The future of management will not belong only to the most technical professionals. It will belong to those who can think critically, lead responsibly, communicate clearly, and use technology to create better outcomes.
Mr. Sanjay Laul, Founder at MSM Grad
