From Awareness to Application: How Business Schools Are Helping Executives Lead with AI

Business schools are teaching leaders to apply AI at a strategic and organizational level, not just to learn the tools.

Few senior executives today need convincing that artificial intelligence will shape the future of their organizations. Surveys show high awareness of generative AI – which can produce text, code and images in seconds – and boardrooms are actively discussing its potential. The harder question is how to move from awareness to application.

Business schools are stepping in by reshaping their executive education programs to make AI tangible. They are placing greater emphasis on practical use – from adopting customized AI tools to exploring how AI influences organizational strategy and decision-making.

Leading with AI, not just using it

At MIT Sloan Executive Education, the emphasis is not simply on teaching what AI is, but on preparing executives to lead with it.

“Our programs are specifically designed to bridge the gap between conceptual understanding and practical implementation,” says Paul McDonagh-Smith, a visiting senior lecturer at the school.

Executives learn to anchor decisions in real business challenges. In the Leading the AI-Driven Organization course, for instance, participants work on building AI readiness across culture, data strategy, and leadership mindset – skills McDonagh-Smith says help leaders “scale AI initiatives beyond pilot projects.”

He adds that the focus across programs is on developing fluency in identifying the right AI opportunities and making confident, responsible, and future-focused decisions. To ensure leaders learn by doing, MIT Sloan relies on “sprint-based” problem solving and hands-on interaction with cutting-edge models.

Tailoring AI to organizational needs

At IE University in Madrid, Spain, the focus is on applied experimentation tailored to each leader’s context. The school equips executives with ChatGPT Edu licenses – a version of the chatbot built for universities – along with training to maximize their use.

“Participants actually apply it to their own contexts through hands-on workshops,” says Martin Rodriguez Jugo, general manager of lifelong and digital learning. “By the end of the class, they have not only played with AI tools but have also developed specific AI agents and custom GPTs tailored to their own needs and circumstances.”

The university has also launched three-day programs focused on business functions such as HR, finance, marketing and legal, helping leaders apply AI within their workplace contexts while cross-pollinating ideas with peers from other specialties.

“Real AI fluency requires a change in habits and an openness to a new way of working,” Rodriguez Jugo adds. “It is important to play around with these tools and gain hands-on practice… to critique or complement their outputs, rather than simply using them.”

Not just what AI can do, but what it enables a company to become

Some schools emphasize that executives must view AI as a strategic lever reshaping business competition and leadership itself – not merely as a tool for efficiency.

“I emphasize shifting the focus from ‘what AI can do’ to ‘what kind of company we want to become because of AI,’” says Anat Lechner, clinical professor of management and organizations at Stern. She encourages participants to connect AI to their core strategy, rethink organizational structures and build in ethical considerations.

At NYU Stern Executive Education, the Leading in the Age of AI course focuses on helping executives build the strategic mindset required to lead AI-driven transformation rather than simply understanding the technology.

Group projects and reflection exercises help executives test ideas and rethink their leadership style in the AI era, where leadership is shifting from control to coordination.

Adapting AI to how real organizations work

At the Rotman School of Management, University of Toronto, Canada, peer-based and experiential learning are proving especially effective.

“We’ve found that experiential and peer-based learning are essential,” says Professor Walid Hejazi, academic director of executive programs. Cross-functional groups mirror how real organizations work, while simulations and case discussions help executives shape strategies for their own contexts.

Rotman’s Generative AI and Organizational Transformation Program combines economics-based teaching with practical readiness. Sessions such as Preparing and Planning for GenAI Adoption and Barriers to Adoption push executives to assess their own organizations while panels with industry leaders – including chief data officers – bring real-world implementation into the classroom.

 

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