The Illusion of Competence: The Study of Cognitive Offloading in AI-Augmented Management Education

Generative AI, Management Education, Market-ready atrophy, Cognitive offloading, Human capital, UTAUT2

There is a prominent shift in how management education students approach analytical tasks of solving complex business problems, market research interpretations, evaluating operational efficiency or case study analysis due to the rapid integration of generative Artificial Intelligence (Gen Ai) in higher education. However, this convenience has given rise to a new phenomenon called “market–ready atrophy” which shows the widening gap between students' perceived competence and their actual ability to solve problems without the help of algorithms. The study investigates “illusion of competence” by anchoring cognitive load theory and UTAUT2 (unified theory of acceptance and use of technology). Using a multi-phase research design, including a survey of 100 MBA students and a controlled experiment, the research explores how AI impacts critical thinking capabilities. And the study builds up a framework that ensures AI integration without the replacement of human judgment capabilities.