A conceptual framework for teaching generative AI

Abstract

Generative AI (GenAI) can create tremendous value for organizations; however, many organizations struggle to hire professionals with the knowledge needed to integrate GenAI into their operations. Business schools have the opportunity to develop students who can meet this requirement. We propose a framework that equips students with a structured approach to using GenAI to solve business problems and make decisions, along with a clear awareness of its challenges and limitations. This framework can serve as an initial conceptual model to help students understand the critical role of GenAI in business operations. Having this foundation will later help them develop more advanced GenAI skills and adapt to emerging applications, including agentic AI systems.

Our framework is based on the premise that understanding GenAI's role in business operations is fundamental, with business operations defined as the transformation of inputs into products and services for customers. Our framework highlights GenAI's vital role in supporting problem‐solving and managerial decision‐making in this transformation process. We evaluated the framework's usefulness with business students. We found that students solved business problems more effectively after learning the framework, were more confident, and reported positive learning experiences. We discussed the framwork with several business executives and faculty. They responded that they liked the broad framework as a good starting point for students to learn about the benefits and challenges of using GenAI in business, and the importance of contextual knowledge in making good decisions with GenAI.