Copyright© 2025. All Rights Reserved by EuroAmerican Education.
AI, ESG, and Strategy: Why Business Education Must Evolve to Tackle Complexity
As we move through 2025, the business world faces a level of complexity that is both unprecedented and continuously shifting. Artificial intelligence (AI), once considered a futuristic concept, is actively transforming industries, revolutionising the way companies operate and redefining competitive advantage. At the same time, environmental, social, and governance (ESG) standards have evolved from being optional or regulatory afterthoughts to becoming fundamental pillars of corporate strategy. Add to this the challenges of a volatile global economy, changing workforce demographics and relentless technological innovation, and it’s clear that businesses must constantly adapt to survive and prosper.
Business education has never been more vital. Emerging leaders require new abilities and mindsets to meet these interconnected challenges. Faced with this, business schools everywhere are reimagining their curriculum, teaching methods and strategic priorities. The transformation of business education is no longer an option—it's a requirement for preparing graduates to succeed in a world characterised by complexity, innovation and accountability.
Business schools are undergoing a phase of rapid transformation. AACSB has stated in their State of Business Education Report 2025 that institutions are under constant pressure from financial challenges, changing student expectations and the accelerating speed of technological change. The conventional model focused on static knowledge and siloed disciplines in the academics is no longer sufficient now. Students in modern times need to master fresh skills, adapt to constant change and analyse the implications of technology and sustainability on business practices.
AI Integration: AI is a central aspect of business studies today, with more than 47% of education leaders working with AI on a daily basis and 60% of administrators indicating AI usage in their institution.
ESG Priority: Organisations and business schools themselves are placing priority on ESG, acknowledging its role in creating long-term value as well as managing risks.
Skills Development: There is an increasing focus on educating the student how to think, not just what to think. Adaptability, curiosity and resilience are as important as technical knowledge.
Workforce Readiness: The disconnect between academic knowledge and actual business problems is being questioned, with business schools trying to close this gap through experiential education and industry relations.
Data-Driven Decision-Making: Data literacy and analytics have become foundational skills. According to McKinsey, data-driven companies are 23 times more likely to acquire customers, 6 times more likely to retain customers and 19 times more likely to be profitable. Reflecting this, over 60% of business schools now incorporate data analytics and AI tools into their curriculum.
Personalised and Adaptive Learning: AI and data analytics enable personalised learning experiences tailored to individual student needs. Adaptive platforms improve engagement and outcomes by adjusting content and assessments in real-time. Studies show that personalised learning can increase mastery rates by up to 50%.
AI in the Business World
Adoption of AI is estimated to reach 378 million users worldwide by 2025, with the market size for AI anticipated to reach $244 billion. AI drives anything from customer service chatbots in business to predictive analytics, supply chain optimisation and strategic decision-making. Companies that harness AI well are able to respond more quickly to changes in the market, get more efficient and open up new sources of value.
AI in Business Schools
Business schools are not just teaching about AI—they’re making use of it to upgrade the learning experience:
1. Personalised Learning: AI-driven platforms adapt content material to the requirements of individual students, enhancing engagement and results. In 2025, 47% of learning management systems will be powered by AI, supporting personalised learning at scale.
2. Automated Evaluation: Applications such as ChatGPT and AI grading tools facilitate administrative work, freeing up faculty to engage in mentorship and curriculum development. Indeed, 65% of educators already apply AI to scholarly work, and 56% of university students use AI on assignments.
3. Increased Engagement: AI-enabled technologies such as virtual reality (VR) and augmented reality (AR) are increasing the engagement of students—97% of students are likely to enrol in courses utilising AR and VR.
4. Case Study: Leeds School of Business, University of Colorado Boulder
Leeds School of Business swiftly incorporated generative AI into operations, research and teaching following the release of ChatGPT in late 2022. They formed specialised committees for AI in operations, research, and education in 2024, emphasising both ethical and technical issues. This initiative is preparing students to succeed in AI-driven workplaces and established Leeds as a leader in responsible AI education.
Generative AI will contribute an additional $200 billion to the world's education sector by the end of 2025. It improves learning outcomes, streamlines administrative tasks and assists in upskilling or reskilling workers in occupations impacted by technological disruption.
Aslo read - Role of AI in Shaping the Future of Business Schools
ESG in the Corporate World
ESG principles are now central to strategies implemented by various businesses. Companies are expected to:
1. Protect the Environment: Cut emissions,
2. Support Social Good: Promote diversity, equity and inclusion; practice fair labour; and have a positive impact on communities.
3. Ensure Good Governance: Practice
Investors, regulators, consumers and employees are all demanding more accountability. According to a report by Morgan Stanley, generative AI is also enabling companies to
ESG in Business Education
1. Curriculum Integration: Top business schools are integrating ESG subjects into their curriculums. Not only are students taught about financial performance, but also about how business affects society and the world at large.
2. Experiential Learning: Collaboration with businesses and NGOs provides opportunities for students to deal with actual ESG issues, from sustainable supply chains to social impact investing.
3. Research and Innovation: Business schools are producing next-generation research on ESG best practices, enabling organisations to integrate sustainability at all levels.
INSEAD has integrated ESG into its MBA programme through the Hoffmann Global Institute for Business and Society. Students work on projects in social impact, environmental sustainability and responsible leadership to prepare them to lead ESG efforts in their professional futures.
The future of business leadership lies in the confluence of AI, ESG and strategy. Here's how these forces reinforce each other:
AI for ESG: AI allows organisations to monitor ESG performance, detect risks and maintain compliance in real time. For instance, supply chain solutions powered by AI can track emissions, raise ethical warning flags and optimise the use of resources.
ESG for Strategy: Aligning strategy with ESG generates long-term value, minimises risk and aligns organisations with stakeholder expectations.
Strategic Agility: AI insights coupled with ESG frameworks collectively enable leaders to evolve rapidly and responsibly in response to new challenges.
Case Study: Unilever's Sustainable Living Plan
Unilever, one of the world's largest consumer goods companies, employs AI to scan supply chain metrics and minimise environmental footprints. With the incorporation of ESG in its overall strategy, Unilever was able to minimise carbon emissions and wastage significantly, improve brand image and boost financial performance.
Prime Challenges
Faculty Training: Most professors require upskilling in AI technologies and ESG frameworks to be able to teach the same effectively.
Resource Constraints: Introduction of new technologies and curriculums necessitates investment in infrastructure and professional development.
Bridging the Skills Gap: The skills mismatch between academic education and actual business requirements continues. For instance, just 84% of graduates from the top 15 2024 business schools accepted job offers within three months of graduation compared to earlier years.
Opportunities
Leadership Commitment: Institutions that achieve leadership buy-in and form dedicated teams for AI and ESG integration are seeing the most progress.
Industry Partnerships: Partnerships with firms give students real-life experience and keep the curriculum up to date.
Global Collaboration: Conferences and knowledge exchange forums, like the AACSB Deans Conference, are encouraging worldwide discussion on best practices for integrating AI and ESG in business education.
To remain relevant, business education must combine academic rigour with real-world relevance. This means:
Incorporating AI and ESG into Core Courses: Every business student should graduate with a good background in AI tools, data analysis and ESG principles.
Developing Critical Thinking and Ethics: Students must learn not just how to use technology but also how to apply it responsibly and ethically.
Encouraging Continuing Learning: With the changes in technology and business, the mindsets and skills of business leaders need to change too. Business schools can promote continuous learning and flexibility.
The intersection of AI, ESG and strategic agility is a new dawn for business education. As transformation becomes the norm, those who can interpret complexity, utilise digital tools responsibly and drive lasting value will define the future of business.
Business schools that step up to this challenge—by transforming their study structure, investing in their faculties and establishing close industry partnerships—will not only survive but will be changing the very future of business itself. The imperative is clear: to develop leaders who are able to convert complexity into opportunity and create positive impact in a dynamic and increasingly integrated world.
