Reconceptualizing Formative Assessment in Business English: Opportunities, Challenges, and Ethical Considerations in the Age of AI

The rapid integration of Artificial Intelligence (AI) into educational contexts necessitates a critical reconceptualization of formative assessment (FA) in Business English (BE) instruction. This paper explores the transformative opportunities, persistent challenges, and critical ethical implications of implementing AI-driven FA tools in higher education BE programs. AI technologies—including automated writing evaluation, speech recognition analytics, and interactive conversational agents—offer potential for personalized feedback, enhanced assessment granularity, and scalable progress monitoring. However, significant challenges arise from AI’s limitations in evaluating nuanced communicative competence, risks of embedded algorithmic bias, threats to student data privacy, complexities in preserving academic integrity, and the fundamental impact on educator roles. This paper argues that meaningful integration requires robust pedagogical frameworks prioritizing human oversight, ethical design principles, and intentional professional development. By synthesizing insights from language assessment theory, AI ethics, and professional education, we propose guiding principles for developing critically informed, pedagogically sound AI-mediated FA practices that uphold core educational values while harnessing technological innovation for sustainable BE learning outcomes.