In the rapidly evolving tech landscape, higher education teaching must innovate to prepare students for real-world challenges. Practical exercises on emerging topics provide relevant hands-on experience with current real organizational problems such as the integration of Artificial Intelligence (AI). This topic is essential for students’ competences but still scarce in the bachelor curriculum of Organizational Psychology. This study aims to pilot-test an AI-based people management exercise for third-year bachelor students of this mandatory subject, with potential adaptability to similar courses.

Integrating practical exercises in higher education is crucial for enhancing student engagement and learning. By staying abreast of technological trends, students develop the capacity to integrate new technologies and tools into practice. AI tools are becoming more widespread in organizations, making it essential to understand their applications. This exercise addresses the question of not just what AI can do, but how much we want to leverage AI in people management, particularly given the high-risk classification of AI tools in this domain by European regulations.

The exercise simulates a selection process scenario where students must fill a significant number of job positions under time pressure. To enhance efficiency, students utilize a generative AI tool, such as ChatGPT, to assist in the hiring process. The task includes three key aspects. First, it covers people management, specifically the selection processes and practices, such as conducting job analyses to create detailed job descriptions, functions and responsibilities, identifying desirable skills for person-job fit, and aligning candidate values with organizational core values for person-organization fit. Second, it involves understanding the use of AI and defining its role in people management. Third, it emphasizes the ability to reflect on how much technological support should be use at work and make decisions accordingly, weighing the benefits and challenges of using AI in people management.

Through this exercise, students are expected to achieve the following learning objectives: develop critical thinking skills by analyzing and solving complex problems, gain proficiency in using technological tools, specifically AI, in practical applications, understand and apply basic concepts of people management and organizational behavior, enhance decision-making and analytical skills in a high-pressure environment, and become aware of the ethical implications and responsible use of AI in selection processes and practices.

This exercise was applied to two third-year sections of the mandatory bachelor course “Organizational Psychology” in a practical seminar of 1,5 hours with around 130 students. Student and teacher evaluations showed that the exercise helped students gain practical skills and develop a forward-thinking mindset essential for modern workplaces.

In conclusion, this exercise serves as a comprehensive educational tool that bridges the gap between theoretical knowledge and practical application. It equips students with the necessary basic understanding of potential implications (benefits and risks) of AI adoption in people management processes.

Keywords: Artificial Intelligence (AI), technological integration, problem-based learning, higher education, people management.