Preparing MBA Graduates for the AI Era: Embedding Responsible, Ethical and Critical Use of AI in Project Management

Abstract — As AI increasingly formats modern life, the responsible and ethical use of AI has become a critical societal need. MBA graduates - the future leaders of organisations and communities - must therefore develop strong AI literacy skills, including awareness of AI technologies' capabilities and limitations, the ability to evaluate AI-generated outputs, and the capacity to assess ethical considerations. Yet, integrating AI as a practical learning tool while preventing its potential uncritical use and automation bias remains an ongoing educational paradox. Drawing on theories of reflective practice and experiential learning, this research showcases the preliminary implementation of a three-phased pedagogical design within a project management subject in an MBA curriculum, and how it supported the development of AI literacy skills and the ethically informed project practice in real-world contexts, forming the basis for subsequent research. Keywords— Critical AI Literacy, Reflective Practice, Experiential Learning, AI Ethics, AI in Higher Education, Project Management Education