The swift adoption of Artificial Intelligence (AI) in Business Management Education (BME) entails a paradoxical transformation characterized by significant opportunities for personalization and optimization, along with serious ethical and instructional threats. In this paper, we conduct a thorough and systematic evaluation of both the benefits and risks associated with integrating AI in BME, based on our multi-method research that included more than 1,500 BME students, 120 instructors, and 40 recruitment agents from 15 different institutions. Utilizing a mixed-method design, we highlight important opportunities such as a 40% reduction in grading time and a 25% increase in engagement through simulation, while identifying major threats including a 68% prevalence of student dependency among faculty and 45% of faculty reporting algorithmic discrimination issues. We recommend an innovative, two-pronged solution: the Algorithmic Ethics Compass for governance and the Augmented Intelligence Pedagogical Model for prac