Bloomberg Businessweek Podcast Summary

Episode: AU's B-School Turns to AI
Date: September 25, 2025
Hosts: Carol Massar, Tim Stenovec
Guest: David Marchick, Dean of the Kogod School of Business at American University

Overview:

This episode focuses on the rapid integration of artificial intelligence (AI) into business education, specifically highlighting the "AI-first" approach at American University’s Kogod School of Business. Dean David Marchick joins the hosts to discuss how and why his institution is preparing students for an increasingly AI-driven workplace, what that means for curriculum, faculty, students, and even admissions, and the broader implications for the labor market and economy.

Key Discussion Points & Insights

The Impetus for Becoming an “AI-First” Business School

• Genesis of the Initiative ([02:24-03:16]):
  • David Marchick recounts pivotal moments three years earlier:
    • President of Google likening AI’s significance to “fire or electricity.”
    • A visiting AI VC telling students:

      “You likely won’t be replaced by AI, but you could be replaced by someone who knows AI if you don’t.” – Brett Wilson (via Marchick) [02:40]

  • Marchick’s takeaway:

    “We need to infuse AI into everything we do to prepare our students for an AI workforce.”

Classroom Integration: Practical and Theoretical Approaches

• From Day One ([03:18-04:01]):

  • All students, both undergraduate and MBA, are told they’ll use AI daily; emphasis on responsible usage since many were told not to use it in high school.
  • Instruction begins with “what's wrong with AI” before teaching its proper uses.
  • Students learn classic business fundamentals (e.g., underwriting investments, marketing plans, negotiation) augmented by AI tools.

• Fact-Checking and Skepticism ([04:34-05:06]):

  • Courses (e.g., advanced data management) deliberately expose students to AI-generated errors:

    “AI can be a powerful tool, but you need to be skeptical. You need to test it, you need to probe, and you need to be able to shape it to produce the right answers.” — David Marchick [04:57]

Shifting Educational and Professional Skillsets

• Marchick’s Unique Background & Perspective ([05:06-06:32]):

  • Non-traditional career (law, policy, Carlyle Group) informs his view:

    “Surround yourself with people that are better and smarter than you in each of their areas and empower them and you can do anything.” — David Marchick [05:57]

  • Dual focus for students: strong business fundamentals + AI skills.

• Soft Skills are “Power Skills” Now ([06:32-07:23]):

  • Communication, teamwork, creative and critical thinking are more vital than ever.

    “The ability to give a pitch, to communicate orally, to work in teams, is as important as ever.” — David Marchick [08:39]

Addressing Concerns About AI and Learning

• On Learning Loss and New Challenges ([07:23-08:43 | 09:41-11:12]):

  • Hosts question whether tech-driven education eliminates the value of learning from failure and deep engagement.
  • Marchick counters:

    “It’s just a different type of struggle... students today need to learn how to do the stuff that’s required in an AI economy.” [11:39]

  • AI augments, rather than replaces, critical learning moments:

    “AI can help you...It’s a collaborator. And so those ‘aha’ moments are still there. They’re just different.” — David Marchick [10:13]

• Admissions in the AI Age ([08:51-09:26]):

  • Marchick:

    “Now the best students are going to be ones that are most curious, that have an entrepreneurial mindset. They’re going to be able to take risk, they’re going to figure out stuff on their own.” [09:09]

AI’s Impact on Faculty & Educational Culture

• Faculty Adaptation and Buy-In ([12:10-12:49]):

  • Initially some resistance from faculty; now, 90% infuse AI into coursework (up from 50% the previous term).

    “Everybody said, the parade's leaving, I either need to get in front of it or I’m going to be left behind.” — David Marchick [12:40]

• Experiments and Embracing Failure ([16:31-17:21]):

  • Kogod encourages experimentation—one entrepreneurship class (Tommy White) uses “all AI to create the class” (no books/readings, just prompts and teamwork).

    “We’ve told our faculty it’s okay to fail because nobody really knows what’s going on or what we’re doing because it’s so new. So try something. If it doesn’t work, try something else.” — David Marchick [17:15]

Broader Economic Perspective

• Labor Market Disruption ([06:00-06:32]):
  • Referencing a Stanford study:

    “AI-exposed jobs for 22 to 25 year olds are shrinking between 13 and 20%.”

• Rapid Societal Change ([14:04-14:46]):
  • Marchick contextualizes AI’s rate of adoption compared to previous technologies:

    “ChatGPT has acquired the same number of users...five times as fast as Netflix or Amazon, 20 times as fast as Facebook.”
    “AI is changing that [technological adoption] in a matter of months.”

• Uncertain Economic Impact ([14:46-15:02]):
  • Marchick is candid:

    “I don’t think we know. I think there’s big pluses and I think there’s big minuses. My view is that there will be winners and losers and my focus is taking care of the students...”

Expanding the AI Advantage

• AI Minor for Non-Business Majors ([15:20-16:14]):
  • Now available to students in fields like medicine or policy, boosting their market power:

    “If you have an AI minor, you’re going to be much more attractive because AI is going to transform healthcare more than perhaps any other field.” — David Marchick [15:39] “I think it’s a huge leg up for both business students and non-business students.” [16:03]

Notable Quotes & Memorable Moments

• On Being Replaced by AI:

  “You likely won’t be replaced by AI, but you could be replaced by someone who knows AI if you don’t.”
  (Brett Wilson, via David Marchick) [02:40]

• On the New DNA of Success:

  “Now the best students are going to be ones that are most curious, that have an entrepreneurial mindset.” — David Marchick [09:09]

• On Faculty Cultural Shift:

  “The parade’s leaving – I either need to get in front of it or I’m going to be left behind.” — David Marchick [12:40]

• On Prompting with AI:

  “He [Tommy White] created a class this year using all AI to create the class. It has no books, no reading. The only assignments are prompts. Prompts plus teamwork. We’ll see how it goes. Will it work? I don’t know. But we’re trying..." — David Marchick [16:37]

• On AI’s Economic Unknowns:

  “Do you think we know if yet it’s good for the economy?”
  “I don’t think we know. I think there’s big pluses and I think there’s big minuses.” — David Marchick [14:46]

Timestamps for Key Segments

• AI as a Fundamental Business School Shift – [02:24–03:16]
• Classroom Implementation of AI – [03:18–04:01]
• Fact-Checking and AI Fallibility – [04:34–05:06]
• Marchick’s Background and Philosophy – [05:06–06:32]
• Soft (Power) Skills for an AI Economy – [06:32–07:23]
• Admissions and Academic Rigor in the AI Age – [08:51–09:26]
• Teamwork and Modern Workforce Readiness – [10:13–11:12]
• Faculty Adaptation and Cultural Buy-In – [12:10–12:49]
• Rapid Tech Change and Economic Impact – [14:04–15:02]
• Opening the AI Minor to All Students – [15:20–16:14]
• Faculty Experimentation with AI-Driven Classes – [16:31–17:21]

Takeaways

• AI is now foundational to business education at forward-looking institutions.
• Students’ greatest assets will be a blend of curiosity, adaptability, critical thinking, and comfort with advanced technologies.
• Faculty and curricula must radically adapt to remain relevant.
• AI offers both positive disruption and serious challenges to employability and economic stability—the outcomes remain unpredictable.
• Experimentation, openness to failure, and comfort with uncertainty are becoming essential qualities for both educators and students.

Original Episode Tone & Language:
The conversation is accessible, candid, and occasionally self-deprecating—Marchick shares personal shortcomings and learning curves, emphasizing practical skill over traditional metrics. The episode balances urgency about AI’s disruptive potential with optimism about the value of adaptability and lifelong learning.