After 36 years at University of Michigan's Ross School of Business, Jeff DeGraff – known as the "Dean of Innovation" – isn't mincing words. The MBA, as we know it, is broken. It's about time someone in his position said it out loud!

DeGraff's message is simple: "The future doesn't exist in the center — it exists at the edges. I've made a career standing there. That's where the breakthroughs are." Yet, we're still training future business leaders using outdated lessons.

We believe the MBA still has a place in shaping the next generation of business leaders; however, we'd be remiss in discussing its shortcomings in a rapidly changing market.

While AI reshapes entire industries, MBA programs are still discussing case studies from the past (hello, Southwest Airlines!) DeGraff argues that "Most tasks that can be objectively graded can already be done by AI." So... why are we still grading students on finding the ONE right answer in finance and accounting?

Here are a few of the symptoms:

B-schools worship strategy: Remember your "bulletproof" strategic plan from 2020? COVID-19 killed it in Q1. For some reason, we're still teaching students to build five-year strategies instead of adaptive frameworks that pivot to meet market conditions when reality hits.

We're obsessed with best practices: MBA programs preach "best practices" at length. However, as DeGraff points out, innovation doesn't happen in the safe center – it happens at the messy margins, where conventional wisdom really breaks down.

Training helps future leaders avoid taking risks: We're producing managers who excel at following templates, rather than leaders who can navigate uncharted territory.

If DeGraff were to redesign the MBA for the AI era, he would "start by diversifying the backgrounds of students to spark what he calls 'constructive conflict.'" Here's what that looks like:

Create real stakes, with room to fail: Put students in actual decision-making scenarios where failure teaches more than success. Pilots train in simulators that can crash without killing anyone – why shouldn't future CEOs?

Embrace the paradox: As DeGraff says, organizations love change.... but hate change-makers. There's no perfect answer to resolve this tension – and that's the point. The ability to hold contradictions and find creative solutions is what separates future leaders from mere managers.

Adopt AI as a creative partner: Instead of fearing automation, teach students to use AI as a thought partner... then push beyond what machines can do. The future belongs to human + AI collaborations, not by replacing people altogether.

MBA programs teach innovation while operating like bureaucracies. Instead, DeGraff would "measure adaptability, creativity, and the ability to sustain progress over time" rather than for correctness. Unfortunately, most MBA programs remain stuck in the same old way of assessing outcomes and their students.

In my experience – in the real world of B2B SaaS and venture-backed startups – many successful founders skip the MBA entirely. They're too busy building products and their companies.

Prospects are taking a hard look at the ROI of MBA programs and asking themselves whether it truly makes sense for their careers. As a result, MBA programs have a choice: evolve or become irrelevant. The question isn't whether they should change – it's whether they'll move fast enough.

The future won't wait for some curriculum committee to meet, debate, meet again, and again... and again... and roll out something new in 2030. It needs to happen SOON.

Make no mistake – there's still a place for the MBA. It's a terrific launchpad for young careers, and a fantastic opportunity to invest in personal and leadership development. However, the programs must meet the demands of the changing times.

Related: What Stanford GSB Students are Really Saying

What do you think? Do you think MBA programs can provide what students and future leaders truly need? Join the conversation on LinkedIn. Subscribe to our newsletter to get insights delivered straight to your inbox.