Artificial Intelligence and ChatGPT are changing how universities teach future financial leaders. Students need to learn how to use AI and ChatGPT properly, understand AI’s limitations and know when they can appropriately use AI.
According to Anthony Cardillo, more than 77% of companies are either using or exploring the use of AI. In fact, a number of companies have signed enterprise-wide site license agreements to use ChatGPT. Universities teach Excel skills because employers expect finance graduates to have Excel expertise. As more employers use AI, employers will expect college graduates to know how to effectively use AI tools as well. A recent survey by ResumeBuilder found that over 90% of business leaders want workers with ChatGPT experience.
Because Gen-Z has grown up using personal computers and cell phones, this generation is comfortable using technology and using the internet to find answers. However, absent guardrails, current college students can use AI and ChatGPT improperly.
Submitting Work Done By AI And ChatGPT As A Student’s Own Work
Universities expect students to submit original work. Work done using AI and ChatGPT is not original work. If a student characterizes work done using AI and ChatGPT as their own or does not indicate that they used AI or ChatGPT to complete the work, that student is committing an academic integrity violation.
Using AI And ChatGPT May Not Be Conducive To Student Learning
Many students prefer to learn by accessing materials online, instead of reading a physical or online textbook. With Google, YouTube, AI and ChatGPT, students can often find an answer to a problem quickly and easily. However, when using these online resources, students may not understand the concepts that underly their answers.
Using AI And ChatGPT Does Not Always Provide Correct Answers
AI and ChatGPT can provide answers to a wide variety of questions and problems. However, the more ambiguous a question or problem is, the more likely it is that AI and ChatGPT will generate an incorrect answer. When I used ChatGPT to take a Bentley University Spring 2023 semester finance exam, ChatGPT only answered half of the questions correctly. Students using AI or ChatGPT may not be able to determine whether an AI generated answer is correct and may further assume that all AI generated answers are correct.
Instructors who are teaching the next generation of leaders should incorporate the following steps into their classrooms to help students with AI and ChatGPT.
When It Is Appropriate To Use AI And ChatGPT
Instructors should explain the circumstances under which AI and ChatGPT usage is acceptable. For example, students may use AI and ChatGPT when working on daily homework problems. Whereas students may not use AI and ChatGPT in term project work.
In addition, students should learn how to properly cite AI and ChatGPT usage. Instructors can easily include this type of information in a course syllabus.
When It Is Helpful To Use AI And ChatGPT
Instructors should explain when the usage of AI and ChatGPT is helpful and when it may not be helpful. For example, in a Financial Modeling Course, ChatGPT was highly effective when writing VBA code for macros. Upon completion, a student could easily evaluate the VBA code to ensure that it worked as expected. Whereas ChatGPT was not effective for preparing a capital budgeting analysis in the same Financial Modeling Course. With capital budgeting, ChatGPT did not reflect opportunity costs and sunk costs correctly. When a problem is unambiguous, ChatGPT will usually generate a correct answer. Whereas, when a problem is ambiguous, ChatGPT is less likely to arrive at a correct answer.
When an answer is arrived at using AI and ChatGPT, students should be reminded to “sanity check” the answer for reasonableness.
Understanding Concepts
Instructors should explain the concepts that underly each financial calculation and include conceptual questions in course exams. If a student does not understand the concepts behind a formula, memorizing the formula may not be useful. Students are more likely to misapply a formula that they do not understand.
For example, ChatGPT cannot determine the weighted average cost of capital (WACC) for a privately held company. Because the inputs needed to calculate a privately held company’s WACC are not readily available, qualitative judgement is needed to identify proper inputs.
Practice Communications
Instructors can help prepare students for graduation by having them explain their answers during class. When a student explains an answer, that student is demonstrating knowledge of the underlying concepts.
In addition, all students benefit by practicing their communication skills. A study prepared by the Association for Talent Development found that a lack of soft skills, including communication skills, are a challenge in the workplace. Post graduation, future finance leaders will need to communicate to a variety of company stakeholders, including, peers, supervisors, senior managers, boards of directors, debtholders, shareholders.
As AI and ChatGPT continue to improve, teaching methods will continue to change to develop future financial leaders.
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