By Marcelina Horrillo Husillos, Journalist and Correspondent at The European Business Review
The MBA, also known as a Master of Business Administration, has been the business degree for entrepreneurs and ambitious businesspeople to get. Many top CEOs and high earners in some of the most successful companies have either done some postgraduate work or earned their MBA, which has made it a popular degree to pursue for decades. Harvard introduced the Master of Business Administration degree in 1908. Today, an MBA is a graduate degree offered by business schools across the world.
MBA candidates come from exceptionally varied backgrounds. For example, only 24% of students in Harvard Business School’s class of 2024 studied business in college. Twenty-eight percent had engineering degrees, 14% studied physical sciences, 10% social sciences, 19% economics and 5% arts or humanities. While Harvard Business School is more diverse than many, undergraduate business majors make up less than half a class, on average, across a large sample of MBA programs.
Traditionally, earning an MBA has been an excellent way to stand out to potential employers. Many people still see it as a requirement to reach a C-suite title at a large company. But does it have the cache it used to have in today’s business world? Let’s explore some of the perceptions and changes on today’s MBAs:
MBA is Oversaturated
Meeting someone with an MBA used to be a novelty, and MBA graduates commanded a lot of respect with their detailed knowledge of business. But with the easy accessibility and the large number of people entering and finishing these programs, the market for employees with an MBA is oversaturated.
Further, many educators feel that because of the wide variety of MBA programs that exist today, the quality of the coursework has declined. Some also believe students are not receiving the education and business skills necessary to get a high-caliber job after graduation. To some, today’s students are not as well educated as MBA graduates in years past and aren’t as distinguished
At a time, only American students sought a master’s degree in business administration. But as the economies of places like Japan and China draw increasing attention, would-be businesspeople from Asia and elsewhere are seeking MBAs too. The same goes for people in Europe. As a result, the number of MBA graduates continues to increase, further diluting the value and uniqueness of the degree.
Switch in Employers’ Perception
Employers are starting to recognize that other qualifications are equally as important as having an MBA. It’s still more than that, though; employers are acknowledging that formal education isn’t the only way to be good at something valuable to a business. Internships and alternative experiences are increasingly accepted in lieu of degrees, which means there could be better ways to get to the places you want to go than spending time and money on an MBA. Furthermore, some companies today prioritize hiring for cultural fit over education and experience.
Also, a declining economy often means employers simply can’t afford to hire the best and brightest minds, especially those who request a higher salary to pay for their expensive business degrees. Why pay top dollar for a candidate with a generic MBA when it could be more efficient and cost-effective to teach another candidate your company’s specific operations?
MBA vs Masters
GMAC data revealed prospective students’ interest in enrolling in masters degrees grew by 8% in 2024. By contrast, demand for MBA programs fell by 9%. However, across all aspiring business school students, the majority (52%) still preferred to study an MBA.
The report highlighted a link between increasing demand for masters degrees and the growing number of specialized programs on offer at business schools. These degrees provide students with the chance to explore highly relevant topics such as artificial intelligence (AI), sustainability, and data science. It also noted that changes in the survey methodology could have impacted results.
On a separate note, beyond competition among students, the MBA has its own academic competitor: the Master of Science. Many schools offer specialized M.S. programs in areas like finance, accounting and medical management. Earning an M.S. usually costs less than an MBA and takes only one year.
New MBA Roles Emerging From AI
As artificial intelligence (AI) continues to revamp the business landscape, MBA programs worldwide are adapting their curricula to prepare future business leaders for these big transformations. The integration of AI into business education is not just about understanding new technology; it is about reshaping the way future leaders think, strategize and operate within their industries.
Roles that once relied heavily on manual business modeling, operational planning, and market analysis are now being supported – or even replaced – by AI tools. This doesn’t mean MBAs are obsolete. Quite the opposite: as automation scales, the human layer becomes more valuable. MBA graduates are now expected to move upstream – using insights from AI to lead initiatives, drive innovation, and guide ethical, customer-centered strategies.
In today’s business environment, MBAs must be fluent in interpreting data and making decisions with AI-driven insights. Leaders are expected to challenge black-box assumptions, understand limitations of predictive models, and guide teams through data-informed strategies. Familiarity with platforms and tools like Python, SQL, Tableau, ChatGPT and Salesforce Einstein is becoming the norm in tech-forward roles.
To lead in an AI-powered business world, MBA graduates need more than foundational business knowledge. They must be agile, tech-aware, and capable of translating innovation into strategy. Employers are looking for professionals who can not only understand the impact of AI, but also guide its application across teams and functions.
To sum this up, AI is lowering barriers to entry for aspiring founders. What once required teams of specialists can now be executed by small, agile groups using AI tools for product development, market testing, and strategy. For MBAs with entrepreneurial ambitions, this shift enables rapid experimentation and faster go-to-market strategies.
Emergence of hybrid MBA programs
In 2019, 50% of Online MBA programs reported growth in application volume. The COVID-19 pandemic really lit the touchpaper for Online MBAs though. In 2020, 84% of Online MBA programs reported growth, the highest change across any type of degree.
As many full-time MBA programs moved online, students who may not have considered studying online suddenly saw the benefits. The 2021 MBA.com Prospective Students Survey found that just over a fifth of students were more likely to consider online learning as a result of COVID-19.
For many, however, Online MBAs can’t fully replace what a full-time MBA can offer—whether that’s authentic networking or immersive learning. Instead, there’s growing momentum behind a hybrid model, where student learning is split between online and the classroom.
Interest in hybrid programs has doubled between 2018 and 2021, from 10% to 20% of candidates, according to GMAC’s survey.
Hybrid programs offer the best of both worlds: the flexibility and accessibility of Online MBAs with the tangible physical benefits of a campus-based program.
Warwick Business School’s Distance Learning MBA has topped the Financial Times Online MBA rankings since 2016: unlike 100% online programs, the program supplements its primarily online tuition with select opportunities for face-to-face interaction.
Conclusion
An MBA may not be as prestigious as it once was, but that doesn’t mean no one should pursue one. Studies still show that those with an MBA earn more than those with a bachelor’s degree alone. According to the Graduate Management Admission Council (GMAC), MBA holders earn a median starting salary that’s 22 to 40 percent higher than bachelor’s graduates.
Besides a higher salary, an MBA can provide valuable networking opportunities you might not be exposed to otherwise. The connections you make while earning your MBA could lead to more career opportunities down the road. Additionally, if you’re exclusively focused on climbing the corporate ladder, an MBA provides a solid educational background and a great line on your résumé. Some traditional firms may even require it.
Online and hybrid MBAs will continue to offer a novel form of flexibility and accessibility when it comes to studying. They will attract candidates who wouldn’t have previously considered online learning, and candidates who wouldn’t ordinarily apply for business school. The integration of online teaching into hybrid MBA programs also offers the best of Online and full-time MBAs.
AI isn’t replacing MBAs – it’s redefining what they do. New hybrid roles are appearing that require both business acumen and AI fluency. These roles demand strong leadership, cross-functional collaboration, and the ability to connect technical innovation with strategic business value – all hallmarks of a top-tier MBA education.
