In the evolving landscape of international business education, bridging the gap between theoretical knowledge and real-world application remains a critical challenge. While students acquire a solid foundation in trade agreements and cross-cultural negotiations, they often struggle to apply these concepts effectively under real-time pressure. This innovation introduces Executive Hot Seat AI, an intelligent tutoring system designed to simulate high-stakes negotiation environments and provide real-time, personalized feedback. By leveraging artificial intelligence, students engage with a virtual expert who evaluates their negotiation strategies, offers context-specific guidance, and challenges them to refine their approach.

Implemented in a business negotiation course at Tecnológico de Monterrey, this pedagogical innovation enhances student engagement and critical thinking by integrating an AI-driven advisor that mimics the pressure of real negotiations. Through a structured five-phase methodology, students first develop an initial negotiation plan, interact with the AI for immediate feedback, refine their strategies based on AI-generated insights, and submit a final version for assessment. This iterative process cultivates decision-making agility, adaptability to dynamic scenarios, and strategic problem-solving skills.

Pre- and post-implementation surveys indicate a significant increase in student confidence and performance. Prior to AI integration, 60% of students expressed uncertainty in applying negotiation techniques. Post-intervention, this figure dropped to 20%, showcasing enhanced competency. Additionally, 85% of participants successfully incorporated AI feedback into their revised strategies, demonstrating improved analytical reasoning and structured decision-making. Beyond skill development, engagement metrics revealed heightened participation in discussions and increased motivation, as students actively sought to test and refine their negotiation approaches.

This project aligns with emerging trends in AI-enhanced education, personalized learning, and technology-enhanced assessment, fostering a scalable model for experiential learning in negotiation courses. By positioning students in realistic, high-pressure scenarios, Executive Hot Seat AI provides a transformative learning experience that not only strengthens negotiation acumen but also prepares students for the complexities of global business interactions. The findings from this study underscore the value of AI-driven simulations in higher education, reinforcing the potential of intelligent tutoring systems to revolutionize competency-based learning in business education.

Keywords: AI in education, negotiation skills, experiential learning, personalized feedback, intelligent tutoring systems, higher education innovation.