Business school professors’ picks

Welcome to professors’ picks, offering a weekly curated selection of FT articles by and for business school faculty to connect classrooms to current events and to develop students’ critical thinking.

Read all submissions at www.ft.com/bschoolpicks. Save this link in myFT to receive emails alerting you to each new edition. Search the tags for relevant topics to illustrate teaching points. Encourage students to join the debate in the comments section beneath the article.

Comments or contributions? Get in touch at profpicks@ft.com 

Economics

DeepMind slows down research releases to keep competitive edge in AI race

Tags: Innovation, Game theory, Information asymmetry, R&D management

Summary: DeepMind, Google’s AI division, has recently tightened its research publication policies as part of a broader strategy to secure a competitive advantage in the rapidly evolving AI landscape. The company is now subjecting its research to a more bureaucratic approval process — including a six‐month embargo for “strategic” papers — to ensure that sensitive innovations are not prematurely exposed to competitors. This shift marks a departure from DeepMind’s earlier reputation for the rapid dissemination of groundbreaking work, such as the influential “transformers” paper that helped spark the generative AI boom.

The new policy underscores a significant transition in DeepMind’s approach, from prioritising open academic progress to emphasising product-driven outcomes and market leadership. While these measures are intended to protect intellectual property and competitive advantage, they have led to frustration among researchers whose career progress has traditionally depended on high-impact publications. The internal shift not only reflects broader industry trends, where the competitive landscape is increasingly shaped by controlled information flows, but also raises questions about the trade-offs between research progress and strategic secrecy in high-tech innovation.

Classroom application: This case provides rich material for discussions with Executive MBA students on competitive dynamics, information asymmetry and the economics of innovation in a course on microeconomics, game theory or competitive strategy. The article can be used to illustrate how decisions regarding the release or withholding of critical information can serve as strategic moves in a competitive game. For instance, DeepMind’s embargo policy represents a trade-off where the benefits of maintaining a competitive advantage are weighed against potential losses in reputation, the retention of researchers and scientific progress.

This scenario naturally lends itself to a discussion of game theoretic models where firms decide whether to reveal or withhold information based on the anticipated actions of competitors. The article also provides a platform to discuss the impact of internal incentives on organisational performance, and the challenges of aligning research and development with overarching business objectives.

Questions:

• How does DeepMind’s decision to delay the publication of its research illustrate the economic trade-offs between sharing knowledge publicly versus retaining competitive advantage?

• From a game theoretic perspective, how might the delayed disclosure of research influence the strategic interactions among major players in the AI industry? Consider whether this scenario can be modelled as a simultaneous or sequential game.

• What role do signalling and information asymmetry play in DeepMind’s current publication policy, and how might these factors affect market perceptions and competitive behaviour?

• In what ways might the internal changes at DeepMind related to publication protocols be analysed through the lens of the principal-agent problem, especially regarding the incentives of individual researchers versus the organisation’s commercial goals? How can firms design incentive structures that balance the need for academic credibility with commercial priorities?

Maher Said, Associate professor, NYU Stern School of Business

Managing Risk and Uncertainty

Investors flock to gold funds as fears over Trump tariffs mount

Tags: Markets, risk, asset classes, hedging

Summary: Investors are flocking to gold as economic uncertainty deepens, driven by fears of new tariffs and a potential global economic slowdown. Gold’s surge reflects a broader shift towards safe-haven assets, with investors seeking protection from market volatility. Central banks have been steady buyers, but a renewed rush into gold funds highlights growing anxiety. As concerns over inflation and global growth mount, gold’s appeal continues to rise, reinforcing its role as a refuge in times of economic stress.

Classroom application: This article provides a platform for faculty and students to discuss asset classes broadly, concepts around portfolio diversification, and where investors and central bankers look for safety during times of market uncertainty.

Questions:

• What asset class is gold a part of?

• What is an Exchange Traded Fund (ETF)?

• What is meant by the term “hedging” and why does gold fulfil that purpose in times of market uncertainty?

• What are the attributes of publicly traded firms whose shares are considered “defensive stocks”?

• What other assets generally thrive during periods of market volatility and why?

Tom Davis, Clinical assistant professor, Joseph M Katz Graduate School of Business, University of Pittsburgh

Finance, Leadership

Larry Fink points to clients’ anxiety about markets as BlackRock inflows slow

Tags: Finance, Uncertainty, Anxiety, Risk

Summary: The world’s largest asset manager BlackRock has reported a slowdown in inflows after two record quarters, with chief executive Larry Fink saying that anxiety about markets is dominating its conversations with clients. New business has shrunk from $281bn in Q4 of 2024 to $84bn in Q1 of 2025, and Larry Fink noted that “Uncertainty and anxiety about the future of the markets and the economy are dominating each and every client conversation.”

Classroom application: This article provides a platform for faculty and students to discuss how uncertainty promotes anxiety, and what leaders can do to help their employees, customers and other stakeholders manage anxiety during uncertain times.

Questions:

• What are some factors that generate uncertainty for businesses, and what are the primary factors driving uncertainty today, particularly in finance?

• What is the link between uncertainty and anxiety, and how do they manifest in people’s behaviour? What risks does this create for the business?

• How can leaders stay focused on the long-term big picture and avoid becoming reactive to uncertainty-induced anxiety themselves?

• What actions might leaders take to mitigate the negative effects of uncertainty and anxiety on their employees, customers, and other vital stakeholders? What is the role of communication in this response?

• What opportunities might arise from times of uncertainty if managed effectively, and what do leaders need to do to capitalise on these opportunities?

Moshe Cohen, Senior lecturer, Questrom School of Business, Boston University

Economics

Companies get creative in finding ways to limit impact of Trump’s tariffs

Tags: Customs, duties, imports, tariffs, taxes, transfer pricing

Summary: Facing steep US tariffs under Trump, companies are exploring risky but potentially lucrative strategies to lower customs values on imports. Tactics include reporting earlier sale prices, splitting payments, or excluding non-dutiable services like advertising. While these methods may cut tariff costs significantly, they can clash with existing tax strategies, creating tension between customs planning and long-established multinational tax avoidance structures.

Classroom application: This article provides an opportunity for faculty and students to analyse profit maximisation strategies regarding taxes and tariffs.

Questions:

• In general, how can companies maximise net earnings with tax strategies based on transfer pricing?

• What options do companies have to lower import duty payments?

• Which companies/industries face a larger scope for minimising import duties? Why?

• How can multinational corporations balance the conflicting objectives of minimising US import tariffs and optimising global tax liabilities through transfer pricing strategies? Provide a framework for evaluating trade-offs.

• Given the complexity of aligning customs and tax planning, what organisational changes might be necessary within a multinational enterprise to respond to a new wave of global tariffs?

Stefan Legge, Lecturer, University of St Gallen

Ethics, sustainability investing

Deutsche Bank’s asset manager fined €25mn over greenwashing scandal

Tags: Greenwashing, sustainability, ESG, asset management

Summary: Deutsche Bank’s asset management arm, DWS, has been fined €25mn by German prosecutors for misleading investors about its environmental, social and governance (ESG) practices, marking a major development in a greenwashing scandal that has drawn international scrutiny. The fine follows investigations by both German authorities and the US Securities and Exchange Commission (SEC), which previously levied a $19mn fine in 2023 — its largest ESG-related penalty to that date. The scandal began with whistleblower allegations, accusing the company of exaggerating its ESG credentials in its 2020 annual report. Prosecutors in Frankfurt concluded that DWS used “aggressive” and misleading marketing tactics, falsely portraying ESG as integral to its operations and positioning the company as a market leader in sustainable investing.

The fallout from the scandal has been significant, with former CEO Asoka Wöhrmann stepping down in 2022 and receiving a controversial severance package worth €13.7mn; yet the misconduct reportedly continued even after the 2022 appointment of CEO Stefan Hoops. Criminal investigations into specific individuals remain ongoing, and Germany’s financial regulator, BaFin, is also conducting a separate inquiry. While the recent fine will not impact DWS’s quarterly financial results due to prior provisions, shares dipped by 1.2 per cent following the announcement. In 2021, shares in DWS plummeted after the US SEC launched its investigation, erasing €1bn in market value in a single day.

Classroom application: This case provides a rich opportunity to engage students in a critical examination of corporate ethics, regulatory oversight, leadership accountability, and the challenges of sustainable investing. By analysing the DWS greenwashing scandal, students can explore the complex interplay between marketing, governance, investor expectations and legal compliance in ESG. It will develop students’ ability to assess real-world business decisions through multiple lenses — including strategic, legal and reputational perspectives.

Questions:

Governance:

• Should whistleblowers be incentivised or protected more strongly? How do we balance corporate loyalty with public interest?

• What responsibilities do CEOs and senior leadership have in ensuring ESG claims are accurate? Should they face personal consequences when their firms mislead?

Regulation:

• Are strict rules likely to discourage companies from embracing ESG at all? Or does a well-regulated market encourage investors to invest in credible ESG champions? How should regulators balance encouraging ESG investment with cracking down on false sustainability claims?

• Is the €25mn fine an effective deterrent against greenwashing in the financial industry? What alternative penalties could be more effective? Do investors price in greenwashing risk?

Fabiola Schneider, Assistant professor, UCD Michael Smurfit Graduate Business School

Strategy 

Alphabet agrees to buy cyber security group Wiz for $32bn 

Tags: Strategy, Mergers and Acquisitions, Regulation, Technology 

Summary: Google’s parent company Alphabet has agreed to buy cyber security start-up Wiz for $32bn, in its biggest deal to date. Alphabet aims to use the acquisition to drive growth in its cloud business, where Google Cloud remains a distant third behind Amazon’s AWS and Microsoft’s Azure. Thus the move contributes to Alphabet’s long-standing efforts to diversify its revenue streams and reduce its dependence on search advertising. Pending regulatory approval, Wiz is set to join a long list of companies that Alphabet and Google have acquired over the years.

Classroom application: This article provides an opportunity to discuss the growth strategy of an established firm and the role of mergers and acquisitions in such a strategy. 

Questions: 

• How does Wiz fit into Alphabet’s existing portfolio of businesses? 

• What are the potential benefits and risks of the acquisition? 

• Why is Alphabet in the habit of buying emerging high-technology firms instead of developing similar technologies themselves? 

• Some of the firm’s acquisitions (eg YouTube) have been more successful than others (eg Motorola Mobility). What factors affect the success of an acquisition? 

• What assumptions have to be made for the acquisition to make sense at the agreed price? 

Juha Uotila, Associate professor, Warwick Business School 

Global Commerce, International Entrepreneurship, International Strategy

How culture shapes capitalism around the world

Tags: Culture, Hofstede, Vietnam

Summary: Using examples from China, India, the US, and Sweden, the article examines how cultural norms and values influence capitalism differently in each nation. Using sociological theories such as Geert Hofstede’s cultural dimensions and Max Weber’s Protestant ethic, it emphasises that although most countries support private enterprise to some extent, local culture has a significant impact on how capitalism manifests itself.

Classroom Application: This article provides an opportunity for faculty to discuss how and why cultural fluency is important in today’s international business climate. The author provides specific examples through country snapshots doing business in China (hierarchy, thrift, relationship networks, 关系), India (jugaad, जुगाड़ jugaaḍ (Hindi) / جگاڑ jugaaṛ (Urdu)), the US (hustle culture) and Sweden (lagom).

Questions:

• What relevance does Max Weber’s idea of the “Protestant ethic” have to modern Western business practices?

• Can reliance on guanxi (关系), or personal networks, lead to inefficiencies as well as a competitive advantage? Describe

• What can be learned about American principles of achievement and hard effort from “hustle culture”?

• What can more individualistic societies learn from the Swedish paradigm of moderation and balance, if anything?

• How much do national cultures influence economic systems like stock market listing and public versus private ownership?

Case discussion positioning: This article makes the case that culture is an important but sometimes disregarded factor in economic growth. Globalisation spreads products and capital, but it also brings with it a variety of models and ways of thinking. Remembering these cultural roots is even more important as protectionism increases in order to comprehend how global capitalism will develop in the future. Before Questrom School students on a trip to Hong Kong and Vietnam, we spent several hours in discussing the intersection of culture and business. Tej Parikh offered some good thoughts on Vietnam and read relevant FT coverage on India, Hong Kong, Sweden and the US.

Gregory Stoller, Master Lecturer, Boston University Questrom School of Business

Got feedback on professors’ picks or willing to contribute? Get in touch at bschool@ft.com or add your selected articles and questions in the comments below.