USING A WORD GAME FOR TEACHING AI AND STRATEGIC FACTOR MARKETS

This study presents the “BuyWord” game as an innovative pedagogical tool designed to teach the role of Artificial Intelligence (AI) in strategic decision-making. Positioned within the context of Strategic Factor Markets (SFMs), the activity allows students to engage with the complexities of resource acquisition while exploring AI’s transformative potential in business strategy. By incorporating AI support for some participants, the game facilitates a comparative analysis of decision-making performance, highlighting the interplay between human cognition and AI capabilities. This hands-on activity integrates theoretical insights with practical application, emphasizing concepts such as resource undervaluation, firm-specific value, and the strategic implications of uncertainty.

Through its implementation across undergraduate and graduate courses, the activity demonstrated its effectiveness in fostering critical thinking and enhancing student understanding of both AI’s potential to augment strategic decision-making and its limitations. Statistical analysis of game outcomes and reflective class discussions further enriched learning experiences, emphasizing the dynamic collaboration between human judgment and AI-generated insights. By bridging the gap between theory and practice, the “BuyWord” game equips strategy instructors with a versatile tool to prepare students for navigating the challenges and opportunities of an AI-driven business environment.