‘A really good time to think about graduate school”: 4 trends MBA admissions are seeing right now (2024)

The COVID-19 pandemic brought a whole heap of challenges to the MBA space—a degree that traditionally thrives on networking and in-person interactions, but it also made online learning much more accessible and realistic. Today, the MBA admissions process is still seeing these changes play out—with a continued acceptance of online degrees and reactions to the sometimes volatile job market.

The rapid rise of artificial intelligence (AI), particularly generative AI, has also reshaped the MBA experience, not only in terms of the classroom, but also the tools applicants can use to get ahead.

Despite all of these challenges, MBA admissions counselors are constantly seeking the best and brightest students for their programs. They seek students who are eager to tackle frustrations head on and present meaningful solutions—similar to how they would in the business world. Here’s a look at some of the admissions trends the world of MBAs is experiencing right now.

Overall, demand for MBA degrees is decreasing, with many exceptions

During 2023, applications to MBAs experienced a year-to-year decline of 4.9%, according to the latest Graduate Management Admission Council (GMAC) Application Trends Survey Report. Moreover, when looking at graduate management education more broadly, a 4.9% was also experienced— the sharpest decline in the last 5 years.

However, roughly the same number of programs did report increases in applications than the previous year, so the overall decrease is not happening everywhere. Scott Edinburgh, an MBA admissions consultant and the founder of Personal MBA Coach, says he is aware of some schools with MBA applications up as much as 40% year over year.

“It seems like the interest for the MBA is growing more,” he tells Fortune.

When it comes to universities themselves, new programs are always being created. For example, announced last year the creation of a new flex online MBA. Just last week, the College of Charleston said they would be launching a new executive MBA.

Moreover, new concentrations, specializations, and dual degrees are constantly being launched—and not even in subjects you may expect the most like AI. The University of Chicago (Booth), for example, created a new MBA/MS in biomedical sciences as well as an MBA healthcare concentration.

Job market worries see a light at the end of the tunnel

During the pandemic, many major tech companies significantly grew their workforce. Seeing these expansions may have led individuals to consider an MBA to get in on that job hiring action.

However, this period of expansion did not last, and many companies downsized their workforce in the years following. In 2022, about 165,000 tech employees were laid off, according to Layoffs.fyi, and the year following, 263,000 were let go. The good news is that 2024 does not seem to be as dramatic, with about 91,000 layoffs as of half way through the year.

Obtaining an MBA, though, is an investment in the future—not the present, and the economic realities of today will not be the same tomorrow. Edinburgh says he expects those applying to programs now will not have as many concerns about an uneasy job market.

“Since we do have to plan for the future, it's actually a really good time to think about graduate school,” he says.

A resurgence interest in online MBAs

Online MBAs experienced significant growth during the pandemic, but they are largely here to stay.

While 2021 and 2022 experienced post-pandemic declines from the peak, there has been a recent resurgence. According to GMAC data, 58% of online programs experienced application growth in 2023.

“A 100%, pure online, is great for people that, you know, really aren't, aren't located in the location that they want to be studying. And so there will always be a market for that," Edinburgh says.

Edinburgh adds that he thinks that online MBAs will continue to flourish, and he expects hybrid programs to grow. He pointed to the University of California–Berkeley (Haas) as an example of emphasizing flexibility through a mix of online and in-person learning.

AI is revolutionizing applications, program offerings

AI has completely changed the priorities of many businesses—and resultantly business schools.

The technology can play a role at multiple parts of the application process, for better or for worse. Applicants can use it to help with essay writing, test prep, and interviews, whereas schools may be able to use it to analyze application packages. Some universities have created policies restricting the use of technology like ChatGPT, whereas others encourage its use.

Program priorities, too, are being changed with curriculum redesigns, new course creation, and even new program offerings. At the W.P. Carey School of Business at Arizona State University, a new master’s in artificial intelligence in business was just created. Dozens of others have created AI certificates or AI specializations. Overall, it would probably be a pretty hard task to find a university without AI + business coursework.

“The silver lining is that companies haven’t been taken over by AI and robots, so we can expect traditional MBA recruiters to continue hiring capable human-managers to keep the wheels of the juggernaut turning. But regardless of whether students choose the traditional degree or its online avatar, it doesn’t hurt to keep an eye on the (return on investment),” says Sameer Kamat, founder of MBA Crystal Ball, an MBA admissions consulting firm.

The takeaway

Despite frequent changes to the MBA admissions space, one thing will never change: those who can distinguish themselves from the pack will have a better chance at being accepted into a program.

Even though applications might be slightly lower than years past, don’t be deterred; thousands of students are still applying—and being accepted—into programs across the country and learning some of the most in-demand skills to become successful business leaders. Obtaining an MBA remains one of the best tried-and-true paths toward eventually leading a Fortune 1000 company.

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Jordan Friedman contributed to this piece.