Introduction to AI Transformation in Economics Education

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Will AI Improve Undergraduate Economics Education? Matthew E. Kahn∗ December 13th 2025 Abstract For decades, undergraduate economics educators have followed a well-worn playbook featuring text- books, lectures and problem sets. Students have passively listened, taken notes and studied for exams. AI disrupts this educational process. Some students are using this tool as a substitute for their own precious time. What is our best response? This paper provides a prospective analysis of how to restructure every phase of the undergraduate economics experience to improve the major and better prepare students for their uncertain future. 1 Introduction For decades, undergraduate economics educators have followed a well worn playbook. In 2025, my teaching today resembles what I was up to 34 years ago. While this makes my life easy, the rise of AI poses a new opportunity for me to reinvent how I teach. Tenured faculty face the usual effort investment decision problem. This paper provides a prospective analysis of how to restructure every phase of the undergraduate eco- nomics experience to improve the quality of our education, and better prepare students for their uncertain future. Such a ref...