  The rapid evolution of artificial intelligence (AI), especially in the domain
of Large Language Models (LLMs) and generative AI, has opened new avenues for
application across various fields, yet its role in business education remains
underexplored. This study introduces the first benchmark to assess the
performance of seven major LLMs, OpenAI's models (GPT-3.5 Turbo, GPT-4, and
GPT-4 Turbo), Google's models (PaLM 2, Gemini 1.0 Pro), and Anthropic's models
(Claude 2 and Claude 2.1), on the GMAT, which is a key exam in the admission
process for graduate business programs. Our analysis shows that most LLMs
outperform human candidates, with GPT-4 Turbo not only outperforming the other
models but also surpassing the average scores of graduate students at top
business schools. Through a case study, this research examines GPT-4 Turbo's
ability to explain answers, evaluate responses, identify errors, tailor
instructions, and generate alternative scenarios. The latest LLM versions,
GPT-4 Turbo, Claude 2.1, and Gemini 1.0 Pro, show marked improvements in
reasoning tasks compared to their predecessors, underscoring their potential
for complex problem-solving. While AI's promise in education, assessment, and
tutoring is clear, challenges remain. Our study not only sheds light on LLMs'
academic potential but also emphasizes the need for careful development and
application of AI in education. As AI technology advances, it is imperative to
establish frameworks and protocols for AI interaction, verify the accuracy of
AI-generated content, ensure worldwide access for diverse learners, and create
an educational environment where AI supports human expertise. This research
sets the stage for further exploration into the responsible use of AI to enrich
educational experiences and improve exam preparation and assessment methods.
