The corporate demand for tomorrow’s talent: Why B-Schools must transform in the age of AI

As Indian economy expands further, the corporate recruitment would rapidly evolving with varying and harsher expectations for industry-ready students, and will be further driven by technological advancements and shifting social behaviours. As industries brace for an AI-driven future, the needs corporates have from their recruits are undergoing a transformation. The challenge now is for business schools to keep pace, or risk producing graduates who are ill-prepared.

Indian B-schools must evolve into true business schools by delivering tangible ROI on the education they provide. They owe it to their students and the parents who invest heavily in fees. Unfortunately, too many B-schools have thrived on FOMO and the herd mentality, with the belief that simply offering a MBA or equivalent qualification will guarantee a career. It's time for these institutions to prove their value in measurable outcomes, not just promises.

The Technological core

We are at the rapid growth and disruptive stages of an AI age, where artificial intelligence is not just a tool or gimmick, but a core driver of business innovation and operational efficiency. According to a report by McKinsey, AI could contribute up to $13 trillion to the global economy by 2030. This staggering figure highlights the necessity for B-schools to pivot from traditional curricula that focus on finance, marketing, and operations to include AI, data analytics, and digital strategy. They also need to teach their students the understanding of newer and emergent business models with these disruptions.

Moreover, technology is not just a domain of tech giants anymore. Across industries—whether in manufacturing, retail, or services—companies are automating processes, adopting machine learning for predictive analytics, and using AI for decision-making. In this context, a candidate's ability to understand and harness emerging technologies will be as essential as traditional management skills.

India’s Education System: Struggling to Keep Pace

In India, the education system remains woefully out of sync with these emerging needs. The National Education Policy (NEP) 2020, which seeks to modernise education, has yet to be fully implemented across most states. This delay in rollout is compounding the challenges for Indian B-schools, where curricula remain largely theoretical, with limited integration of real-world applications. Despite the push for reforms, the gap between education and employment is widening, especially in the face of rapid technological shifts.

One area of concern is the slow adoption of interdisciplinary studies. A study by the Indian School of Business found that less than 20% of B-schools in India offer programs that integrate technology with business education, leaving graduates ill-equipped to handle the technological demands of today’s corporate world.

The Social Shift: GEMZ and New Expectations

Generation Z, is entering the workforce with a different set of expectations than previous generations. They are digital natives who expect technology to be a seamless part of their professional lives. They value flexibility, purpose-driven work, and constant skill development. The gig economy, where project-based work has taken precedence over long-term employment, is also shaping the expectations GEMZ (Gig Economy, Millennials, Gen Z) have from their careers.

However, this generation is not uniformly skilled in the advanced technologies that corporates now demand. This skill gap can be an opportunity for B-schools to not only modernise their teaching methods but to anticipate the demands of a future where AI and other technologies dominate the workplace.

The Rising Need for Skilling and Reskilling

A key challenge for both educational institutions and corporates is skilling and reskilling. A World Economic Forum report estimates that 54% of employees globally will need significant reskilling due to automation and AI. While corporates are investing in upskilling programs, the onus is equally on educational institutions to provide graduates with not only the technical skills but also the ability to adapt and continuously learn.

In the context of Indian B-schools, this means moving beyond textbook learning and case studies to more experiential learning models. Internships, live projects, and collaboration with industry are no longer optional but essential to ensure that students are prepared for the complexities of modern business.

The current education model is simply not agile enough to meet these challenges. The NEP proposes an overhaul of the system with a focus on critical thinking, creativity, and interdisciplinary studies. However, with most states lagging in implementation, Indian B-schools are still producing graduates with skills that are mismatched with industry needs.

The situation is particularly dire in Tier-2 and Tier-3 cities, where access to quality education and skilling programs is limited. This geographical disparity means that while top B-schools in metros may be adapting to new demands, a large portion of India’s graduate workforce remains underprepared for the job market.

The Way Forward

Business schools must adopt a dual approach to ensure their graduates remain relevant. First, they need to embrace the technological shift by incorporating AI, machine learning, and data analytics into their core curriculum. Courses on these subjects should not be optional electives but part of the foundational business education.

Unless Indian B-schools innovate and provide education that is both relevant and contextual, they risk being replaced by digital platforms that are rapidly gaining ground. The future of education is shifting towards more personalised and tech-driven learning experiences. I foresee B-schools that will thrive by bringing in industry professors of practice, utilising Mixed Reality and AI tools to create immersive learning environments, and managing each student’s learning journey uniquely. These innovations will be critical to not just surviving but staying ahead in a world where traditional methods are becoming obsolete.

Second, there must be a greater emphasis on soft skills such as creativity, problem-solving, and emotional intelligence. While AI may take over many operational tasks, it will never replace the human qualities that are essential for leadership, collaboration, and innovation.

Conclusion

The link between education and employment is fraying as technology advances faster than traditional education systems can adapt. As corporates seek recruits who are ready to navigate an AI-driven world, Indian business schools must transform to meet these needs. In this AI age, the demands on B-schools are clear: they must produce not just managers, but technologists, innovators, and leaders who can thrive in a digital-first, ever-changing corporate landscape. For Indian B-schools, the challenge is clear: modernise or become obsolete.

The writer is Author, Policy Researcher & Corporate advisor