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Indian Institute of Management Ahmedabad (IIMA) is moving away from blanket restrictions on generative AI. Its director, Professor Bharat Bhasker, says students can use tools such as ChatGPT or Gemini to summarize and analyze cases before class. Faculty then change the facts and assumptions in those cases so students must make decisions under uncertainty instead of repeating an AI-generated answer.
What IIM Ahmedabad now allows
IIMA’s policy is supervised use, not unrestricted use or a prohibition. Students may put a business case into an AI tool during preparation. The tool can help them identify issues, summarize information and analyze possible courses of action. The educational test comes later: students must explain and defend a decision when the situation changes.
“We have responded by encouraging students to use AI rather than prohibiting it,” Bhasker said. He also said, “AI is helping us train managers to think beyond what is already documented in a case, while challenging faculty members to improve classroom teaching.”
The approach addresses a practical problem with traditional case preparation. If every student submits the same prompt and receives a similar generated response, a discussion can become a contest in reproducing a summary. IIMA’s answer is to make the classroom exercise less predictable.
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How AI is being built into the case method
Students prepare with an AI tool
Before a session, a student can use ChatGPT or Gemini to work through the assigned case. That preparation may produce a concise account of the facts, identify competing options or expose missing information. AI is therefore treated as a preparation aid rather than the final managerial judgement.
Faculty alter the scenario
In class, instructors introduce new conditions that were not in the original case. Examples described by IIMA include a disrupted supply chain, an unavailable shipping route or workers failing to report. A recommendation that looked sensible under the original assumptions may no longer work.
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Students decide under uncertainty
The discussion shifts from “What did the case say?” to “What should a manager do now?” Students have to reassess evidence, state their assumptions, weigh trade-offs and justify an action while conditions are changing. That requires context and accountability that a generic generated answer cannot supply by itself.
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Bhasker said IIMA purchased about 1,500 licences for students, faculty members, research associates and other users. The initiative was introduced in April 2026. Because the figure comes from the director’s interview rather than a separately published technical audit, it should be read as the institute’s reported allocation, not as an independently verified usage count.
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The licences are part of a broader institutional policy rather than a single experiment in one elective. IIMA’s official announcement says the institute partnered with OpenAI on February 19, 2026. The partnership covers responsible AI use by students, faculty and staff; faculty enablement; generative AI in case-based pedagogy and classroom workflows; and campus-wide deployment of ChatGPT Edu across degree and executive programmes.
Infrastructure beyond classroom prompts
Krishnamurthy Tandon School of Artificial Intelligence
IIMA inaugurated the Krishnamurthy Tandon School of Artificial Intelligence on March 26, 2026. A ₹100 crore endowment from Chandrika Krishnamurthy Tandon and Ranjan Tandon supports the school.
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Its stated mission is applied and responsible: translating AI advances into practical tools and solutions for decision-making, productivity and complex problems in business, government and society. The school also emphasizes translational research grounded in Indian contexts, positioning AI as a management and public-interest capability rather than only a software specialization.
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IIMA also reported the maiden 2026–2028 cohort of its two-year blended MBA in Business Analytics & AI. The cohort has 71 professionals from banking, financial services and insurance (BFSI), information technology, consulting, education, retail and e-commerce, biotechnology and healthcare.
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The mix indicates that the programme is aimed at working professionals across sectors, not just software engineers. Its role in the wider strategy is to connect analytics and AI with operational and managerial decisions in different industries.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the institute chose encouragement over a ban
- AI is already part of managerial work. Teaching students to use it responsibly reflects the tools they are likely to encounter in industry.
- Bans do not test judgement. Preventing access can hide whether a student understands an answer, its assumptions or its limitations.
- Changed assumptions preserve the value of discussion. New constraints force students to reason rather than recite a generated summary.
- Faculty must redesign teaching. Instructors need stronger scenarios and questioning when an AI system can handle routine case summaries.
What this model does—and does not—establish
IIMA’s documented approach touches four questions that matter when a business school adopts AI: whether use is permitted, whether assessment and discussion change, how tool fluency is balanced with human judgement, and whether AI is integrated across management education or isolated in a specialist course. Its licences, case redesign, faculty support, ChatGPT Edu deployment and AI-focused MBA address each area.
However, IIMA has not published classroom outcome data showing that the policy improves learning. No independent student evaluation or study is cited with the announcements described here. The initiative is therefore evidence of a policy and teaching redesign, not proof of measured gains in grades, employment or decision quality.
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- Use AI during preparation where the course permits it. Treat summaries and analyses as drafts, and check the underlying case yourself.
- Record the assumptions behind your recommendation. A changed route, workforce or supply condition can invalidate an answer that seemed complete.
- Prepare to defend a decision without the tool. Classroom discussion may focus on why you chose an option, what could go wrong and how you would respond.
- Expect assessment rules to vary. IIMA’s institutional encouragement does not mean every assignment has identical disclosure, citation or collaboration requirements; follow the faculty member’s instructions.
The larger significance for management education
IIMA is treating generative AI as a reason to raise the level of managerial practice. Routine explanation can be delegated to a tool, while the classroom concentrates on framing the problem, recognizing uncertainty, responding to disruptions and taking responsibility for a decision.
That makes the model different from simply adding an AI lecture or offering an optional software workshop. It changes what counts as preparation and what faculty ask students to do with the information they receive. Whether the approach delivers better learning will require transparent evaluation over time, but the policy clearly marks a shift from trying to keep AI outside the classroom to teaching students how to work with it critically.
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