How AI is Changing the Way I Teach Business Law

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AI has taken the world by storm, and the education field is no exception. After over two decades teaching at The Paul Merage School of Business at the University of California, Irvine, I have seen lots of changes related to curriculum, teaching resources and students. However, I’ve seen nothing quite like the wave of AI tools popping up in classrooms. It’s exciting, a little daunting and definitely something we all need to talk about.

So, here’s the deal: I’m not an AI expert. But I have spent a lot of time experimenting with AI, learning from my mistakes and figuring out what works and what doesn’t. I’d like to share some of these experiences with you.

AI in education: What’s the big deal?

AI is already here, whether we’re ready for it or not. According to Cengage research, use of AI has nearly doubled among instructors, from 24% in 2023, to 45% in 2024. Many of us are using AI to create lectures, craft assignments and even grade assessments. The challenge is not whether we adopt AI. Rather, it’s doing so in a way that enhances our students’ learning outcomes, while maintaining academic integrity in our courses.

In my online undergraduate business law course, I have always required my students to take written assessments, where they analyze a set of facts to reach a legal conclusion. Not only am I trying to teach them the principles of law, but I want them to improve their writing skills.

A shift in focus

A few years ago, I noticed a subtle increase in the overall scores for these written assessments. I have taught this course for over 20 years, so I knew what the historical scores were. Looking into it further, I started hearing about how some students were using ChatGPT in their courses. This got me wondering whether some of my students had already been using it to take my written assessments. Quick answer: yes, they were. This now presented a problem: what do I do about it? In an online course, how can I prohibit the use of AI tools on a written assessment while effectively enforcing that ban?  I shifted my focus from policing and enforcing a ban on the use of AI in my courses to teaching my students how to use AI responsibly.

Teaching students to use AI responsibly

In my course, I developed assignments called “Written ApprAIsals.” These three-part writing assignments combine traditional learning with AI-assisted refinement. These teach students how to use AI responsibly while improving their critical thinking and writing skills. Here’s how it works:

Step 1: Write a first draft without AI

Students are given a law and related news article about a current legal issue. They must write a memo which analyzes the constitutionality of this law. I also provide them with guidance on utilizing the standard legal memo format, known as IRAC (Issue, Rule, Analysis, Conclusion), to help organize their thoughts and writing.

Students are permitted to use whatever materials they have, including eBooks, my lecture videos and outlines, Cengage’s online learning platform, MindTap and its resources, and any other information they ethically obtain online. But, they’re not permitted to use AI.

The purpose of this first draft is for them to demonstrate the foundational knowledge they should have already learned. Students must attest to completing this first draft without using AI, and it’s worth 30% of the total “Written ApprAIsal” grade.

Step 3: Integrate AI to resolve deficiencies

Once I have given them feedback on their first drafts, students are required to use AI to improve their first draft. Students must submit the URL to their AI queries and responses (“AI log”). Or less ideally, they can submit a PDF or screenshot of them. I can assess the effort they put in, evaluate their queries, and provide guidance on how to more effectively use AI. This part is worth 40% of the total “Written ApprAIsal” grade.

Step 3: Use AI to help write a final draft

Using what they’ve obtained from AI, along with my feedback, students must transform their first draft into an improved final draft. Students are permitted to continue using AI as well.  They must turn on track changes in their document so I can see what changes they’ve made to the first draft.

Why has this approach worked in my course?

1. It makes students aware of my familiarity with AI and how it’s used. Students now know I am on the lookout for improper usage of AI in our course.
2. It encourages their acquisition of foundational knowledge. Students quickly figure out that they must know the basic legal principles. Without them, they will have no idea if AI is providing them with inaccurate information, which can happen sometimes, especially when it comes to legal cases
3. This approach promotes academic integrity. Students recognize their first drafts must reflect their genuine understanding. There is no benefit to using AI for the first draft. Because the remaining parts are based on their use of AI to improve the first draft, there will not be much room for improvement if the first draft is too good. And because students must submit their AI logs, I can easily ascertain if they actually did the work.
4. Students build necessary skills for their future careers. They can improve their writing and analysis skills in a low stakes’ way, while receiving useful feedback.
5. It helps me focus my efforts on helping them understand the law, rather than having to enforce a ban on the use of AI.

Issues related to this approach

It takes a lot of effort to find the right law and related news article to use. Not only does the law have to be current, but it also must be interesting and relevant to the students. Legal issues must be presented in a way which are factually neutral to avoid bias. And, the news articles must be factual and not cluttered with distracting commentary or opinions.

Additionally, rapid feedback is required. With up to 150 students in my course, I only have a little more than 24 hours to turn around written feedback and comments on their first drafts and AI logs. Frankly, it can be overwhelming.

Tips on integrating AI into your course

I have learned a few things along the way about integrating AI into my courses.

Establish clear rules: Be upfront and clear about when, and how, AI can be used. Stick to those rules and enforce them.

Consider accessibility: Not every student has easy or affordable access to AI tools. Make sure you have alternatives available for these students.

Teach foundational knowledge first: Students need to know the core concepts so they can critically evaluate any AI-generated content.

Require transparency: Students must show how they used AI. It is a great way to keep them honest.

Be flexible and open to experimentation, most importantly: Mistakes are inevitable. There will be times where something you thought would work just doesn’t. That’s ok. Adjust and keep innovating.

Final Thoughts

AI is here to stay, and that’s not necessarily a bad thing. AI is a tool that can help students learn. But, it’s up to us to show our students how to use AI responsibly. Whether it’s helping them improve their writing skills, gain foundational knowledge or develop critical thinking skills, AI has so much potential in our courses. Let’s embrace it and figure out how to make it work for each of us.

Got ideas or experiences with AI in your courses? Let’s connect. I would love to hear how you are using it!

Machiavelli (Max) Chao is a full-time Senior Continuing Lecturer at the Paul Merage School of Business at the University of California, Irvine and Cengage Faculty Partner.