AI Meets Business Education: American University’s Bold New Initiative

Integrating AI in Business: Kogod School of Business Leads the Way

Artificial intelligence (AI) adoption in higher education has risen dramatically, with a two to threefold increase in AI-related research publications observed between 2021 and 2022. Reflecting this global trend, American University’s Kogod School of Business has made a forward-thinking decision by launching the Institute for Applied Artificial Intelligence. This bold initiative is designed to seamlessly integrate AI into all aspects of the school’s curriculum and operations, ensuring that students are equipped to excel in an increasingly AI-driven world.

While many educational institutions, particularly high schools and colleges, have hesitated to embrace generative AI tools like ChatGPT, American University has chosen to lead the charge. By embedding AI into its academic framework, the university is preparing students for the future and challenging traditional educational paradigms. This shift highlights the growing recognition of AI as not just a STEM tool but an essential resource for business innovation and creative problem-solving.

AI, once confined to STEM fields, is now becoming a cornerstone of business education as schools acknowledge its critical importance. David Marchick, dean of the Kogod School of Business, stressed that AI fluency is indispensable for student success. He explained that students would use AI for a range of real-world applications, including consumer research, marketing, financial analysis, investment underwriting, and risk evaluation. However, he clarified that the objective is not to produce programmers but to cultivate business professionals capable of effectively applying AI in practical settings.

Marchick noted that many first-year students arrive with reservations about using AI due to restrictions in their high schools. At Kogod, however, students are encouraged to embrace AI from the outset, integrating it into their learning processes. The institute, staffed with 15 faculty members, plans to expand its team to meet growing demand and ensure robust support for students. This institute is a key element of American University’s broader strategy to position itself as a leader in AI education. As part of this effort, the university has partnered with the AI startup Perplexity to provide all business school students with free access to Perplexity Enterprise Pro. Additionally, Kogod is piloting an educational version of a new Perplexity product tailored specifically for academic environments.

Despite these advances, concerns persist about the potential drawbacks of AI in education. A 2024 Deloitte study revealed that early-career professionals expressed apprehension over AI’s role in automating foundational tasks like report preparation and data analysis, potentially reducing hands-on experience and confidence-building opportunities. However, Marchick argues that mastering AI is indispensable. Drawing parallels to tools like calculators and Excel, he highlighted how such innovations have enhanced productivity while preserving the need for foundational skills.

American University’s Institute for Applied Artificial Intelligence represents a groundbreaking step in redefining business education. By embracing AI and equipping students with the tools to succeed, the initiative aims to prepare future business leaders for a rapidly evolving, technology-driven global economy.

Editor's Note

American University’s decision to launch the Institute for Applied Artificial Intelligence is a commendable and forward-thinking move that reflects the changing demands of the professional world. By integrating AI across its business curriculum, the university is positioning its students to excel in a future where technological literacy is no longer optional but essential. As generative AI becomes increasingly prevalent, students need to understand not only how to use these tools but also how to leverage them strategically in real-world applications. However, as educational institutions embrace AI, they must proceed with caution. The reliance on AI for basic tasks could inadvertently diminish students’ opportunities to develop critical foundational skills through hands-on experience. Striking the right balance between teaching AI fluency and nurturing essential real-world competencies is critical. 

According to Skoobuzz, American University’s initiative sets a promising precedent for other institutions, paving the way for a new era of innovative, AI-driven education.