Abstract
Traditional management education has long remained centered on knowledge memorization and has therefore struggled to develop students' decision-making capabilities in complex business environments. Three specific challenges characterize this problem: a disconnection between theory instruction and business practice, a lag between textbook content and contemporary needs, and a divide between classroom simulations and real-world contexts. We argue that the widespread adoption of generative artificial intelligence (AI) creates a viable means of addressing these challenges. Using a strategic management course as an example, this study proposes three mechanisms for reconfiguring classroom pedagogy with generative AI. The theory-practice dialogue mechanism is designed to bridge the gap between theory and practice. The emerging-knowledge tracking mechanism is intended to reduce the time lag between textbook updates and business practice. The dynamic business-simulation mechanism shifts simulation-based learning from the execution of predetermined rules to decision-making under uncertainty. This study explores viable directions for business education reform in the age of AI and offers a reference for shifting management education from knowledge transmission toward capability development.