Generative AI and management education: a knowledge management perspective

Purpose This study sought to add value to literature on the adoption of Generative Artificial Intelligence (GenAI) in management education through a knowledge management perspective. The study critically examines GenAI’s dual potential to enhance and disrupt educational ecosystems, simultaneously serving as a catalyst for pedagogical innovation and a source of ethical and operational dilemmas. Drawing on complexity theory and paradox theory, the study aims to explore how academic institutions can manage the conflict between GenAI’s transformative potential and the need to uphold honesty, integrity and transparency in education. Design/methodology/approach Semi-structured interviews were conducted with 67 stakeholders (directors, deans and students) at leading management institutes across India. Interview topics included (i) the pros and cons of GenAI usage in higher education, (ii) training students to effectively and efficiently use GenAI to solve real-world business problems and (iii) honesty, integrity and transparency in the use of GenAI. Findings The results reveal that integrating GenAI into management education requires (i) long-term strategic perspective, (ii) clear and adaptive policy frameworks and (iii) robust training mechanisms for all stakeholders. These steps would considerably mitigate the risks associated with GenAI adoption and help harness its potential in knowledge creation, analysis, dissemination and decision-making. Furthermore, the study reveals that the integration of GenAI in management education is characterized by paradoxes that warrant intelligent policy responses. Key recommendations include: (i) structured capacity-building for faculty and students, (ii) inclusion of GenAI in curricula with ethical regulations and (iii) the development of governance frameworks to foster responsible AI literacy across academic and industry boundaries. Originality/value The study examines the GenAI discourse through the dual lenses of Complexity Theory and Paradox Theory, an approach largely missing in current literature. While most studies have focused on the technological or ethical dimensions of AI in education, this study uniquely examines how business schools, as knowledge institutions, can strategically balance the benefits and risks of GenAI adoption. This study thus brings to light localized complexities, ethical ambiguities and actionable insights relevant to educators, practitioners and policymakers.