AI and Business Education: Ethical Challenges and Practical Applications

Abstract

Artificial intelligence (AI) is transforming industries from automating financial analysis in banking to optimizing supply chains in manufacturing and personalizing marketing strategies in e-commerce. This makes it imperative for business students to acquire proficiency in its applications and ethical considerations. Through systematic secondary research and Qualtrics surveys of business students and faculty of a northeast liberal arts university, AI’s role in business education, best practices, and strategies for effective teaching will be distinguished. Students, already familiar with AI tools like ChatGPT, are entering a rapidly evolving academic landscape. Universities like Harvard and Northwestern have AI guidelines in place, primarily addressing issues such as plagiarism. However, there are many potential benefits of AI in business contexts. Educators must emphasize the ethical use of AI, teaching students how to navigate AI's limitations, such as algorithmic bias and misinformation (or "hallucinations"). This paper reviews perceptions of AI and outlines pedagogical methods to balance technical proficiency and innovation with ethical awareness to prepare students for AI-integrated roles in the workforce. By fostering critical thinking and responsible AI use, business schools can ensure their graduates are ready to succeed in a world increasingly shaped by AI.