The emergence of artificial intelligence (AI) has assumed a pivotal role in shaping the contours of contemporary business education. Business schools confront the challenge of innovating management education to meet the dynamic demands of an AI-driven economy. They find themselves at a critical juncture of adaptation that will have a profound impact on their graduates’ future direction and success. Anchoring on stakeholder theory and social learning theory, this qualitative research explores the intricate interplay between business schools, employers and graduates with a focus on enhancing graduate employability in the context of a technologically advanced non-western nation. It formulates an empirically derived model that delineates how business schools can effectively respond to the evolving needs of stakeholders to ensure that graduates are equipped to thrive in the ever-evolving AI-centric world of work. It makes several significant contributions to the existing literature, including a graduate employability ecosystem model that sheds light on factors influencing the employability of business graduates.