As part of my role on AACSB’s Innovation Committee, concurrent with my attendance at the AACSB ICAM 2025 in Vienna, I participated in a demonstration of the latest in the application of Virtual Reality technology in the business education context. The experience was mind-bending, for a variety of reasons.
- The technology used to bring me into a business case involving a retiring founder of a Singapore-based family business, as he pushed for the sale of the company to a British conglomerate, while his daughter, the CEO to be and other family members (and their lawyers, accountants and other board members) expressed varying degrees of reluctance, created a stunningly realistic experience as the case played out.
- More important, I felt like I was experiencing the feelings, issues, questions, risks and other emotions one would have in any such situation – not to mention being asked to “vote” on a variety of decisions that would determine the fate of this proposed merger, its employees and historical brand and reputation.
I felt myself learning things, applying ideas, and taking perceived risks I would have never accessed merely by reading a case study. I’m not saying VR technology is new, but the way it is now being used by a few players who have invested in the technology and the case development is making it into something new.
The INSEAD XR platform “product” I experienced represents an exciting step into immersive learning. What struck me most was how seamlessly they’ve integrated complex business scenarios into virtual environments that feel genuinely engaging. Rather than merely replicating traditional case studies in a digital format, they’ve reimagined how students can interact with business challenges in a three-dimensional space. And now, of course, they are beginning to incorporate AI into the operations, which has countless implications.
The demonstration highlighted how students could navigate virtual boardrooms, analyze data visualizations that surrounded them in 360 degrees, and even participate in simulated negotiations where spatial presence added a new dimension to interpersonal dynamics.
But many questions remain before we declare this the future of business education at scale, versus a terribly interesting experiment.
The Trajectory of VR in Business Education
Virtual reality in education isn’t new, but its application in business schools as an “experiential learning tool” represents particularly new potential, as the “cases” get more sophisticated in their design, production, and execution. Business education traditionally balances theoretical knowledge with practical application, often through case studies, simulations, and real-world projects. VR offers a potential middle ground—practical experiences without real-world consequences.
I believe VR learning in business schools will continue to grow, but with important caveats. The path forward looks more nuanced than either wholesale adoption or abandonment.
Who’s Leading the Way?
INSEAD isn’t alone in this space. Several institutions are making significant investments in VR education:
- Stanford Graduate School of Business has developed VR simulations for leadership training and empathy-building exercises
- Harvard Business School has integrated VR components into their online learning platform, HBX
- MIT Sloan uses VR for supply chain management and operations simulations
- IE Business School in Madrid has created a dedicated Tech Lab with VR as a central component
- Wharton School has launched specific VR modules for trading floor experiences
Beyond academic institutions, companies like Strivr, Immerse, and Talespin are developing specialized VR content for corporate training that business schools are increasingly adopting or partnering with. Very cool stuff, as far as I can see, although some traditional academics seem not so sure of the “substance” of the case narratives being produced. That warrants further exploration.
Factors That Will Determine VR’s Growth in Business Education
Positive Factors
- Experiential Learning Benefits: Research consistently shows that experiential learning leads to better retention and application of knowledge. VR creates memorable learning moments that stick with students.
- Global Accessibility: As demonstrated during the pandemic, virtual learning environments can connect students across borders. VR takes this a step further by creating shared spaces that feel more authentic than video calls.
- Safe Practice Environment: Business mistakes in the real world can be costly. VR provides consequence-free environments to practice decision-making, leadership, and interpersonal skills.
- Decreasing Hardware Costs: VR headset prices continue to fall while capabilities increase. Meta’s Quest headsets have made consumer VR significantly more accessible.
- Differentiation for Business Schools: As competition intensifies among business schools, offering cutting-edge learning experiences becomes a competitive advantage in recruitment.
Limiting Factors
- Development Costs: Creating high-quality VR content remains expensive and time-intensive, requiring specialized skills many faculty don’t possess.
- Physical Discomfort: “VR fatigue” and motion sickness remain issues for some users, limiting session length and frequency.
- Infrastructure Requirements: While hardware costs are decreasing, the total cost of implementation, maintenance, and technical support remains significant.
- Pedagogical Questions: Not all business concepts benefit equally from VR presentation. Critical thinking and analytical skills might sometimes be better served through traditional methods.
- Equity Concerns: If VR becomes central to business education but remains inaccessible to some students (due to costs or technical limitations), it could exacerbate existing inequalities.
The AI-VR Intersection: Where Things Get Interesting
Perhaps the most intriguing aspect of VR’s future in business education is how it will intersect with artificial intelligence. This convergence creates possibilities that neither technology could achieve alone:
Dynamic Scenarios
AI can power VR business simulations that adapt in real-time to student decisions, creating truly responsive learning environments. Imagine negotiation scenarios where AI-powered virtual humans respond differently based on your approach, or market simulations that evolve based on collective student decisions.
Personalized Learning Paths
AI can track student performance within VR environments and customize scenarios to address specific learning needs. If a student struggles with supply chain optimization, the system could generate additional relevant challenges.
Enhanced Feedback Mechanisms
AI can analyze student behavior in VR simulations—everything from eye tracking to decision patterns—providing unprecedented insight into not just what decisions students make, but how they arrive at them.
Scalable Facilitation
One of the biggest challenges in business education is providing individualized attention at scale. AI-powered virtual facilitators within VR environments could provide guidance and feedback without requiring constant faculty presence.
The Future
VR will not replace all traditional modes of business education—nor should it. Rather, we’ll see increasing integration of VR modules for specific learning objectives where immersion adds demonstrable value. The most successful approaches will be those that:
- Target specific learning outcomes rather than using VR for its own sake
- Seamlessly integrate with (rather than replace) existing pedagogical approaches
- Leverage AI to create adaptive, responsive learning environments
- Focus on experiences that would be impossible or impractical in physical classrooms
- Have outstanding skills development metrics and measurement capabilities (already well down the road).
Business schools that view VR as part of a broader educational technology ecosystem—rather than a standalone solution—will see the greatest benefits. This means thoughtful integration with AI, mobile learning, and traditional classroom experiences.
The INSEAD XR demonstration confirmed my belief that we’re witnessing an important evolution in business education—not a revolution that will render traditional approaches obsolete, but an expansion of our pedagogical toolkit that most certainly can ultimately benefit students by providing more pathways to mastery.
For business schools considering investments in this space, the question shouldn’t be whether to adopt VR, but rather which specific learning challenges would benefit most from immersive technology, and how to integrate these experiences into a strategic educational development process.
About the Author
Tim Westerbeck, President
Tim Westerbeck is a leading strategic advisor to higher education institutions around the world. His work focuses on helping institutions grow amidst significant disruption, by defining strategies and new business models aligned with the future.
He has served as a columnist for Businessweek and is a frequent commentator in The Wall Street Journal, The New York Times, and other global media.
Tim is also a regular presenter at global industry forums, such as the Indian Management Conclave, AACSB International, The European Foundation for Management Development, and others.
