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Catalyzing Management Education: Innovation and Artificial Intelligence

Article · September 2022

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Nidhi Srivastava Narayana Business School 14 PUBLICATIONS 61 CITATIONS

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ISSN : 0378 – UGC Care Group 1 CATALYZING MANAGEMENT EDUCATION: INNOVATION AND ARTIFICIAL

INTELLIGENCE Dr Nidhi Srivastava

Professor, Narayana Business School, Ahmedabad Abstract

Management Education has the distinct advantage of preparing its students to face challenges of volatility, uncertainty, complexity and ambiguity (VUCA) of the environment. Artificial Intelligence with its presence everywhere is proving more beneficial for developing such strategies and more profitable business models. The increased competitiveness due to increased use of technological advancement put us all in the situation where we have to rethink and redesign the modules of Management Education in such a way that Artificial Intelligence becomes a facilitator for our students and not a threat for their job prospects. The objective of this paper is to first explore the trends for employable workforce and some evident changes with the presence of Artificial Intelligence now. A survey was conducted on the management students of Ahmedabad only for the purpose of convenience during 2019-20 (before COVID 19 emergence). The findings helped us in rethinking modules to be included in the Management Education curriculum in some form at all levels to prepare the students to meet the expectations of the employers. The paper explores the awareness level of students with respect to AI with the help of a questionnaire to know their outlook towards it as threat. The results were summarized and interpreted in the light of the existing literature on the topic and the insights provided by the Corporate Resource Centre Heads of various professional institutes during personal interviews.

The findings are satisfactory to some extent showing that students are getting ready to face the challenges of posed by Artificial intelligence the job market. Various professional modules or workshops or value added courses are there but they are serving only limited purpose and more efforts are required to take the Management Education to the next level.

Key words: Artificial Intelligence, Innovation, Workforce Trends and Digital Economy Introduction:

It would not be an overrated statement if we mention that the year 2017 to 2020 were the year of digital revolution at the speed never imagined by anyone. The years were largely dominated by discussions around rise in use of artificial intelligence and deep learning in our daily life, its advantages for long term economic growth and of course the threats of mass unemployment. Some of the studies including published by Organization for Economic Cooperation and Development estimated a 9 percent risk to the jobs in U.S alone. Last decade has observed a downfall in the productivity across all major economies and subsequently a weak financial future for their citizens. Technological advancement might have created anxiety for routine jobs but it will bring a much needed economic push (Rotman, 2016) to the system. The extensive use of online applications which help us in solving many issues of our daily life are changing the way the skilled work force has to groom a potential recruit. Today the person who is seeking employment in digital economy has to compete with these algorithms to prove his/her utility. For some of us this presents a whole lot of opportunities to showcase our unique talent and creativity whereas for some of us it is the biggest threat to our brighter financial prospects. Should we be worried or should we look forward for a new age of learning where being unique would be

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ISSN : 0378 – UGC Care Group 1 celebrated in flourishing economies? The time has come that we prepare ourselves first and coming generations next for the potential challenges of the next decade by incorporating the skill sets preparing them to be smart workforce.

Literature Survey

It is always felt that management education when compared to other disciplines has the distinct advantage of training its students for the future and it especially equip them with the right kind of thought process and strategies to deal with volatility, uncertainty, complexity and ambiguity (VUCA) of the environment. Artificial Intelligence with its presence everywhere is proving more beneficial for developing such strategies and more profitable business models. Today a Management Trainee not only has to prove that he/she meets the expectations of the prospective employer at the time of campus placement but also can do much better than a machine/computer, which may also be available for the same function. Some of the news items these days are talking about the online shopping websites, which has given tough competition to once very popular malls, are working with the model of reading our mind with respect to purchase behaviour to the extent that the customer is shifting form ‘shopping to shipping’ to ‘shipping to shopping’. In other words they will now save our time of net surfing too by knowing our preferences in advance and would present us with the best solutions for our daily chores right at our doorsteps. A challenge for human sales force which was so far perceived as irreplaceable by robots. Welcome to the world of Artificial Intelligence (AI), where evolved machine learning has transformed from smart to intelligent. It is spreading its own wings and providing us the warmth under which we could easily stop worrying about our basic daily problems. But worrying is the inherent trait of human being and that is where the machines or Artificial Intelligence is not able to imitate us. A positive mind says that the natural worries when taken care of by AI, give us more time at hand to think about the possibilities for future or how soon this development of AI will become a threat for you.

Extensive research and published reports every other day force us to think when our employer would find a replacement for us in the form of some automation mechanism or robot or software. The challenge becomes all the more prominent for our students especially at entry level or Undergraduate level of Management discipline because it is the repetitive nature of job with least specialised skills that are affected by increased use of Artificial Intelligence. This paper is trying to explore some of aspects for these young graduates with the revolution in the job market due to AI interventions.

Smith, McGuire, Huang & Yang, (2006) in their published history of Artificial Intelligence highlight the use of this term first time by John McCarthy in 1956 but it was deliberated even before that sometime around 1945 by Vannevar Bush. However major recognition to the power of a machine to think is attributed to the research work of Alan Turing in 1950 which today is referred as Turing test.

Since then we come across several definitions for Artificial Intelligence and we realise that the definition has evolved over a period of time. The definition which is found relevant in the case of this study was suggested by Kok et al (2009) which says artificial intelligence is “Imitating intelligent human behaviour”. Some of the most popular definitions found in some dictionaries also convey the same meaning:

(a) The capability of a machine to imitate intelligent human behaviour

(b) The ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings.

(c) The extension of human intelligence through the use of computers, as in times past physical power was extended through the use of mechanical tools.

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ISSN : 0378 – UGC Care Group 1

(d) The theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages (oxford dictionary)

These definitions navigate us to the development where the computers learn from experience and give the meaning to the world with some hierarchical concepts and create additional knowledge for their own use without human intervention. Since the learning starts from simple concepts and build understanding for complicated concepts the results when plotted on a graph shows deep and layered results. Therefore imitation of intelligent human behaviour is also referred as AI deep learning (Peters, 2017). Goodfellow et al. (2016) have also stated that deep learning at present is beyond neuroscientific perspective and cannot be assumed to be neutrally inspired and it is now machine learning which enables a computer system to improve with experience and data. Artificial Intelligence, machine learning and deep learning may have different implications for a developer but for a management graduate the understanding of all three convey the same meaning that a machine is capable to think and perform like a human being. The functioning of all three is dependent upon data and identifying pattern on the basis of that data. We are not alien to this practice. In fact our statisticians were analysing data since ages for precision in decision making and making real time predictions. We must not forget that data analysed by machine or human is of no use if we do not possess the decision making skill to use that data. Thus accountability and ownership of actions taken with the help of data would always remain with humans. That highlights that all organisations and professionals must prepare for data driven technological advancement. Though a survey report by SAS team published in October 2017 presents a perturbing picture narrating that only 12 percent of the organisations of the world are ready for implementation of AI interventions to improve their productivity and 18 percent do not have data science teams at all. These figures show the urgency which is required to train our students with right kind of skills to meet these requirements.

Peter (2017) discussed in his blog a report published by Obama administration referring to the upheaval to be caused by rising use of AI and the strategies to deal with it. Arthur (2011) has coined a word

‘Second Economy’ to describe the economy which is the creation of digitalisation and is vast, automatic and invisible. Now it is in this scenario that the workforce and primarily for us our students have to be trained to support physical economy with the help of skills required in Second/Digital economy. This scenario put us all in the situation where we have to rethink and catalyze the modules of Management Education in such a way that Artificial Intelligence becomes a facilitator for our students and not a threat for their job prospects.

Innovation in workforce trends through Artificial Intelligence

Advancement of Machine learning and its applications in business models have gained traction in last five years exponentially all over the world. Latest developments have made us realise that our young workforce is relieved from the mundane tasks of back office jobs and hardcore jobs which required physical endurance. This has resulted in increased productivity for the organisations and better return on investments. At the same time this development has put the same people who were performing these tasks under pressure to upgrade and retrain themselves to work with these automated systems. The problem is that, while it is easy to point to jobs lost due to technology, it is not as easy to identify jobs created by technology (Stewart, De & Cole, 2015). Of course with automation some of them had to be displaced to some other tasks and that would require them to re skill as per the need with the pressure to compete with the machine performance every time. The post made by Alan S. Brown with the title

“Robots at Work” presents some statistics supporting that the technological advancement has reduced the cost of living. The savings are now driven by price decrease in items consumed as necessities and creating a market for items which were earlier used to be referred as luxuries. These trends are now

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ISSN : 0378 – UGC Care Group 1 observed in developed and developing economies that people spend more money on health, education or wellness services.

Industrial revolution historically proves that technological advancement displace certain types of work but ultimately create better jobs by taking advantage of unique human capabilities. Autor (2015) explains this to us in his widely accepted work as adaptability. He mentions that robots work with precision in controlled environment whereas human beings can execute any unplanned or unstructured work due to their flexibility. Therefore the middle skill jobs would always be required such as medical technicians, plumbers, electricians etc. These positive sentiments highlight the importance of the skills which need to be developed in our workforce. The required skills must include area specific knowledge along with flexibility. Common Sense, problem solving attitude and good communication are assumed to be part of higher order thinking skills these days. A survey by Genpact on 5000 respondents from Australia, US and UK showed that 58 percent consider artificial intelligence as a challenge and find it more challenging for the career opportunities for their children. It is interesting to note that only 28 percent are threatened by the increased use of AI in their current job. The brighter side of this survey was that close to 90 percent respondents believed that AI challenge can be faced by acquiring new skill sets which make them superior to machines or robots.

Artificial Intelligence advancement has shown remarkable development in job scenario for Human Resource professionals. The scanning of right candidate for the right job which used to consume many hours can now be easily done with the help of software. It automatically suggest you the top results which can be scrutinised by decision makers which require more specialised skills. We may observe that the routine work of many executives is being replaced by the software and now the decision maker would need more specialised knowledge to perform next set of functions. Again the machine is giving you real time data for better suggestions but the judgement is to be done by really skilled people. This is where the acquisition of new skills and training of the set of skills by educational institutions comes into the picture.

Methodology:

Since a lot is being printed and published on Artificial Intelligence and it is our preposition that primary level workforce would be affected by this in the first wave of changes, we conducted a survey on our undergraduate students to understand their position with respect to Artificial Intelligence. The questionnaire was prepared and circulated to some 450 students in various colleges of Ahmedabad pursuing undergraduate programme in management stream. For the purpose of convenience the survey was conducted on the students and institutes of Ahmedabad only during 2019-20 (before COVID 19 emergence). This survey aimed to gather some narratives from the respondents about their thought process for artificial intelligence at a very basic level. The data collected was nominal in nature therefore presented with frequencies in a table and bar charts. Chi square test of association is used to analyse the association of two variables to draw some inferences at this level of study. A person or thing likely to cause damage or danger is perceived as threat (Oxford Dictionary). Any possible danger that is experienced by a person subjectively and out of proportion to the real threat or physical danger may be due to his extensive knowledge about that danger or may be due to complete ignorance about it. Fear of unknown is most common to all. The questionnaire checked the awareness of respondents for AI by suggesting possible options where AI interventions are apparent to all. Since this questionnaire was administered without any briefing to the respondents their responses show actual level of awareness and their perception of threat from AI. We propose that:

1. There is an association between threat perceived from Artificial Intelligence and awareness level The review of literature has already suggested that flexibility reduces the threat (Autor, 2015).

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ISSN : 0378 – UGC Care Group 1 McClelland (1961) identified two main characteristics of entrepreneurs namely doing things in a new and better way and decision making under uncertainty. Some of the important characteristics which represent entrepreneurial attitude of those who want to start their own venture after completing education are vision, problem solving attitude, need for achievement, tolerance to face problems or opposition (Liebenstein, 1968). Therefore the job plan for future which requires less enterprising behaviour would perceive more threat from AI interventions. We propose that

2. There is an association between threat perceived from Artificial Intelligence and job plan Data Presentation and Results:

The data collected with the help of questionnaire was analysed with the help of data analysis techniques for nominal data and the results are presented with the help of tables and figures.

Table A shows that the mean value for each of the variable ranges from 1.34 to 3.68 with the standard deviation of 0.47 to 1.26. The mean value for threat from AI for future is 1.34 and standard deviation is 0.47. The mean for awareness of AI (represented by presence) is 3.68 with standard deviation of 1.26 whereas future job expectation has a mean value of 2.00 with standard deviation of 0.90.

Table A: Descriptive Statistics

N=450 Mean

Std.

Deviation What is Artificial Intelligence (AI)

according to you

Where do you find presence of AI in your daily life Comfort level with AI

Future Job Expectation

Threat from AI for your future plan Strategy to deal with AI challenges Valid N (listwise)

2.5800 3.6822 1.4911 2.0067 1.3400 1.6511

.99846 1.26064 .77325 .90406 .47424 .79000

Table 1.1 shows number of respondents having awareness of presence of AI in their life with respect to particular functions. It shows that only 18 respondents who do not find presence of AI anywhere in their life do not perceive any threat from it whereas 117 respondents who observe AI interventions in Banking and Finance feel threatened by it.

Table 1.1 Where do you find presence of AI in your daily life

* Threat from AI for your future plan Crosstabulation Count

Threat from AI for your future

plan Total

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ISSN : 0378 – UGC Care Group 1

yes No

Where do Household

you find Chores/Equipments presence of AI in your

daily life Classrooms

Travelling

Banking & Finance No where

Total

26

30

20 117 104 297

18

24

5 88 18 153

44

54

25 205 122 450 The pattern of result revealed by the contingency is compatible with prediction of Chi square results.

Table 1.2 confirm the pattern of cross tabulation shown in table 1.1 that the association between threat perceived from Artificial Intelligence and awareness level is significant. However, the strength of association between the two variables is not very strong as shown by Phi and Crammer’s V in table 1.3 the value for which range from 0 to 1 and a value towards 1 shows strong association.

Table 1.2 Chi-Square Tests

Value df

Asymp. Sig. (2- sided) Pearson Chi-Square

Likelihood Ratio

Linear-by-Linear Association

N of Valid Cases

33.162a 36.017

10.160

450

4 4

1

.000 .000

.001

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 8.50.

Table 1.3 Symmetric Measures

Value Approx. Sig.

Nominal Phi by .271 .000

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ISSN : 0378 – UGC Care Group 1 Nominal Cramer's

V

.271 .000

N of Valid Cases 450

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

The relationship between threat from Artificial Intelligence and awareness for presence of it in our life was significant: ꭓ2 (4, N=450) = 33.162, p<0.0005. The association was of low strength: ф=0.271 and thus the awareness of presence of AI in Banking and Finance industry accounted for 7.34 percent of the variance in the score on threat from Artificial Intelligence for future.

F i g u r e 1

The output for second chi square conducted (Table 2.1) on the variables threat from AI and future job expectations the pattern of crosstabulation show that 115 respondents who have intention to start their

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ISSN : 0378 – UGC Care Group 1 own venture after graduation perceive AI as threat for their future plan which is in contradiction with our hypothesis. However 127 respondents who aspire for desk job(less flexibility) in future also perceive it as threat is supporting the preposition made. Table 2.2 and 2.3 summarises that there was no relationship between threat from Artificial Intelligence and future job expectation: ꭓ2 (2, N=450) = 2.376, p=0.305.

Table 2.1 Future Job Expectation * Threat from AI for your future plan Crosstabulation

Count

Threat from AI for your future plan

Total

yes No

Future Job Desk job Expectation

Field job

Will start your own venture Total

127 55 115 297

55 28 70 153

182 83 185 450

Table 2.2 Chi-Square Tests

Value df

Asymp. Sig. (2- sided) Pearson Chi-Square

Likelihood Ratio

Linear-by-Linear Association N of Valid Cases

2.376a 2.378 2.368 450

2 2 1

.305 .304 .124

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 28.22.

Table 2.3 Symmetric Measures

Value

Approx. Sig.

Nominal Phi by Cramer's Nominal V N of Valid Cases

.073 .073 450

.305 .305

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ISSN : 0378 – UGC Care Group 1 a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

F ig u r e 2

Discussion:

The association in first case supports the argument that people who have more knowledge about something also perceive more threat from that thing. The perceived threat from AI is very similar to threat from aliens or immigrants perceived by the citizens of a particular country or community. People who have lesser knowledge or vulnerable position in a society perceive high level of threat form unknown (Savelkoul et al., 2011; Semyonov et al., 2006). However a detailed research is further required to analyse these results further. The results of second association refute our claim that a person with entrepreneurial mindset is less likely to assume threat from Artificial Intelligence. Dr Karl Albrecht cited in his book on practical intelligence that even an entrepreneur has three most prominent fears out of the list of five identified fears. They are loss of autonomy, separation or fear of rejection and ego- death or fear of losing confidence in self (other two fears are extinction and mutilation).

The results show that those who have rigidity or those who are aspiring for their own venture perceive AI as threat to their success whereas those who aspire for field jobs having more flexibility are not considering AI as threat.

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ISSN : 0378 – UGC Care Group 1 Discussion: Catalysing Management Education: Innovation and Artificial Intelligence

The speed with which jobs are executed by artificially intelligent devices makes them more competent than humans who perform with emotions. They may be very useful for the countries where working population is low or the nature of work is dangerous. The use of Artificial intelligence has made breakthrough for the jobs which are dull, dirty and dangerous in nature (Lin, Abney & Bekey, 2011).

The corporate promoting use of artificial intelligence focus on maximisation of profit approach and it is giving rise to more automation and more job displacement. It will pose the same question to the stakeholders which is widely discussed in financial forums that for whom this profit would be maximised? If most of people are jobless who would pay for the automated services? A ray of hope is that automation might reduce the cost of living to the level where people with least resources would be able to sustain their livelihood (Smith, & Anderson, 2014). The Digital boom and increased use of AI require development of new skill sets for workforce to be employable and the focus of these skills are creativity, flexibility, high level thinking and relationship network. Though the speed of change is increasing every year but we may still assume some time with us to re-skill our young and old workforce to make the relevant even in the digital economy. The role of played by educational and professional institutions becomes important in this regard especially in case of undergraduate students who have maximum threat of displacement. We have to bring some changes at grass root level in our education policies which are already giving positive benefits to the countries like Finland, Japan and South Korea.

The professionals from these countries perceive less risk from AI due to innovative education system which prepares them to face any challenge in future. We have received few suggestions from people heading corporate relations in academic institutions about the changes observed in digital economy and how it can be tackled during informal discussion which are also supported by published reports on similar issues.

1. Unskilled or jobs which require non-technical qualifications are not the trend during campus placement or for hiring agencies with increased automation.

Specialised domain knowledge either through formal or open sources train these less qualified people for skilled jobs which are still in demand. Government skill development schemes may also play a big role to make these people employable even after use of artificial intelligence.

2. The use of more machines or automation would give rise to anxiety for ownership and accountability for the actions in adverse circumstances. The legal advisors, counsellors or smart contract writers would be the professions in high demand in next five years. India especially with population having good command over language and drafting would have an edge in this professional field.

3. Digital economy has already created new jobs like digital marketing or miners or online content developers. The young and old have the opportunity to acquire the suitable skills with massive online open courses (MOOC) and get a firm ground in the job market. COVID 19 has already catalysed this intervention in a big way.

4. AI interventions even with deep learning may predict most likely scenario for decision making but the actual decision is still preferred to be taken by humans. For example people who are supporting crypto currencies like Bitcoin want them to be legalised to get human recognition and instil more trust. So learning latest technologies is not sufficient, it is also important to have the ability to apply that technique for decision making which can be trusted by all.

Conclusion:

The changes taking place are not new to human kind. We have survived industrial revolution though that had also created a panic wave for possible job losses. We will survive this advancement too.

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ISSN : 0378 – UGC Care Group 1 However, the pace of technological upgradation is much higher now and unprecedented domination of technological giants like Google, Facebook and Amazon etc. fuel the fear of exploitation of humans in the hands of machines. Thomas Friedman. Pulitzer prize winning American journalist and author in his latest interview said that “People who can combine STEM (science, technology, engineering, and math) and relate it to humans will have the highest paying jobs” in future even with the domination of machines. It is now on us to keep this optimism alive and prepare ourselves with re-thinking, re-training and re-skilling for the demands of digital economy.

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