AI Joins the Team: How FME Students Are Learning to Use Generative AI

Professor Ruth Gilleran quickly set the tone for a new era of learning last fall as she introduced Babson’s cornerstone experiential entrepreneurship course—Foundations of Management and Entrepreneurship (FME)—to a new class of first-year students. 

“You now have a digital assistant,” Gilleran announced, referring to generative AI. “You have someone who works 24/7. It doesn’t get bored, it doesn’t complain, and it will do any menial task you need. But it’s also creative. It’s also innovative.”

FME immerses students in the entrepreneurial process, challenging them to develop and launch a venture over two semesters with up to $3,000 in seed funding. To reinforce AI’s role as a tool rather than a cheat, Gilleran invited the students—who brainstorm venture ideas in groups of four—to create an AI-generated image of their new digital team member. Many chose beavers, Babson’s mascot.

“We printed them out, laminated them, and hung them as a constant reminder,” said Gilleran, professor of practice in Babson’s operations and information management division. “Your team of four is now five.”

Fast forward to last week, when those same students proudly showcased their Babson-born ventures at the annual FME Expo. The Len Green Recreation and Athletics Complex buzzed with booths featuring products such as the Beaver Blankie, a dark brown fleece throw; MagnaKeep, a credit card holder designed to thwart cyber thieves; and GemGuard, a durable yet stylish jewelry case for athletes.

Reimagining Prototypes

Throughout the year, first-year students leveraged AI tools such as Microsoft Copilot to brainstorm product ideas, generate customer personas, and simulate market research. Instead of manually crafting survey questions and focus group scripts, students relied on AI to generate them—allowing for deeper analysis rather than tedious drafting.

AI also transformed the prototyping phase, said Lucy Turner MBA’14, an assistant professor of practice in management who serves as faculty co-director of the FME program with Gilleran. Previously, students depended on their own brainstorming sessions and faculty feedback to refine early-stage concepts. Now, AI-powered ideation generates product designs and variations based on different budget constraints, significantly accelerating the creative process.

Turner, who also teaches FME courses, recalled a prototyping exercise in which students were tasked with designing a vitamin dispenser. By prompting AI for suggestions, they produced a wider range of innovative solutions. Once AI-generated descriptions and visuals were in hand, students built low-fidelity prototypes using simple materials such as glue and paper—bridging the gap between digital ideas and tangible products.

Beyond prototyping, AI streamlined startup logistics. Students used AI to compile supplier lists, analyze cost structures, and even create video scripts for marketing campaigns. Some even had AI assume the role of their target customers, responding to surveys in the voice of specific consumer demographics—an inventive way to gain early-stage market insights.

Changing Perceptions

For many first-year students, incorporating AI into coursework required a mindset shift. Turner noted that some students enter Babson with a narrow view of AI, shaped by high school policies equating AI use with academic dishonesty. Babson’s approach, however, frames AI as an entrepreneurial tool that enhances—rather than replaces—human intelligence.

“Students come in thinking AI is just for writing papers faster,” Turner said. “But once they see how it can help them brainstorm, refine business ideas, and even conduct customer research, they realize its value as an entrepreneurial asset.”

Gilleran echoed this sentiment, emphasizing that AI allows students to move beyond routine tasks to focus on strategy. “In the past, students spent hours researching suppliers,” she said. “Now, AI generates a supplier list in minutes, so we can immediately start discussing which supplier makes the most sense.”

Expanding AI’s Role at Babson

The AI integration extends beyond FME. The newly established C. Dean Metropoulos Institute for Technology and Entrepreneurship was launched earlier this year to position Babson at the forefront of technology and AI-driven education. The Metropoulos Institute includes the AI Generator, which examines and supports applications of AI across all disciplines including entrepreneurship, innovation, art, design, communications, and engineering.

“Students come in thinking AI is just for writing papers faster, but once they see how it can help them brainstorm, refine business ideas, and even conduct customer research, they realize its value as an entrepreneurial asset.”
Lucy Turner MBA'14, Assistant Professor of Practice in Management

By embedding AI into foundational coursework, students graduate not only understanding the technology but also knowing how to harness it for innovation and competitive advantage.

“Every industry, every company is now assessing what tasks AI can take on and where human judgment is still needed,” Gilleran said. “Our students are stepping into that conversation early. I’m happy that we’re helping to prepare them for the new world.”

Posted in Insights, Outcomes

Tagged Undergraduate, Faculty, Entrepreneurship Education, Startups

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