Prior to 1900, schools of business had been established at the University of Pennsylvania (1881), the University of Chicago(1898), and the University of California (1898). The class that entered NYU in the fall of 1902, four months after the first of the new degrees had been awarded by the university, was unique in several respects. First, it was the three-year class; second, all students studied the same subjects; third, there were no textbooks--everything was new and somewhat crude; fourth, Dean Haskins died during the first semester; and fifth, Dean Johnson was promoted to the deanship during the same year. Other things occurred that had a strong bearing on the early development of the Fraternity. The Founders occupied the same seats five nights a week. They became acquainted with one another. Four men from Brooklyn (Bergen, Jefferson, Lane, Leach), later known as the Brooklyn Four, walked home from school together over the Brooklyn Bridge.

The spirit of brotherhood grew so strong in the hearts and in the minds of the men from Brooklyn that early in the second year they decided to suggest to the other members of their class that something be done to perpetuate it, and Alpha Kappa Psi, the first professional fraternity in business, was founded at an organization meeting held on October 5, 1904. On March 20, 1905, formal application was made to the State of New York for a charter of incorporation for Alpha Kappa Psi. This application was drawn up in the handwriting of Frederic R. Leach and was signed by the ten Founders: George L. Bergen, Irving L. Camp, Robert S. Douglas, Daniel V. Duff, Howard M. Jefferson, Nathan Lane Jr., Frederic R. Leach, Morris S. Rachmil, William O. Tremaine, and Herbert M. Wright. The application was approved and the charter of incorporation officially issued in the name of Alpha Kappa Psi on May 20, 1905. In 1905, the very first chapter, Alpha Chapter, was installed at New York University; in 1975, Beta Chapter at the University of Denver was installed; in 1911, Gamma at Northwestern University; in 1912, Delta was established at the University of Pittsburgh. Thus began the national development of Alpha Kappa Psi. As of today, Alpha Kappa Psi has expanded to Canada (McGill Chapter in Montreal) and the United Kingdom (Sigma Phi Chapter in Manchester) and therefore is an International Professional Co-Ed Business Fraternity.

In August 1976 women were admitted into the Fraternity under President Richard Reis at the Minneapolis Convention. Beverly Grimm, Mideast Region, became the first female Regional Director in 1981, and Carol R. Carter was the first female National Officer when she was elected to the position of Vice President - College Chapters at the St. Louis Convention in 1985. Now, over 300 College Chapters and over 90 Alumni Chapters have been installed, over 200,000 members have been inducted, and Alpha Kappa Psi is one of the largest of college fraternities.