Like It or Not, AI Is Reshaping the Higher Ed Landscape

The landscape of higher education is undergoing a rapid, undeniable transformation, largely driven by the widespread adoption of artificial intelligence (AI). Oliver Matthews, founder of 4Uni Solutions, a consultancy specializing in technology deployments for universities, highlights that AI in university life is no longer a distant concept; it’s a daily reality for students and staff alike. 

His insights reveal a sector grappling with unprecedented change, where embracing AI isn’t just an option but a necessity for relevance and future success.

The Pervasive Presence of AI on Campus

AI has been researched for decades, but in recent years, there has been a rapid increase in AI use once it became publicly accessible. Oliver explains, “There, of course, was a breakthrough moment when it became publicly accessible.  Everyone could get in there, could play with it, and actually, it is very hard to detect. And students know this. Students see the possibilities, they play with it, and they get immediate support. They get immediate answers.” (00:38

Understandably, the reduction of rote work and time-saving aspects drive this widespread adoption. Oliver adds, “ A significant majority of students are deploying AI, whether free or paid software… with drafting assignments, [or] taking notes. We have people [using] AI note-taking assistants in the classroom, where the professors have no idea that half the students in the room are recording and processing what’s being spoken about. Or uploading their slides into ChatGPT or one of the other tools in order just to analyze and save time.” (01:08)

This innovative deployment is often “off the record,” meaning it may or may not be approved by the university. Students are experimenting, innovating, and enthusiastically sharing their AI knowledge with peers. Oftentimes, AI helps them complete tasks in a fraction of the time it used to take.

And it’s not just students. Faculty members are also deeply engaged with AI. According to Oliver, approximately 70% to 80% of faculty are using AI for a variety of support tasks, including producing course materials and developing curricula. These statistics underscore AI’s profound impact on both teaching and learning processes.

The Policy Lag: Universities Playing Catch-Up

Despite AI’s pervasive use among students and staff, universities are struggling to keep pace. A critical issue is the lack of comprehensive AI policies.

Oliver elaborates, “80 to 90% of all students have some form of AI support within their study, it’s already huge… and yet still only about 50% of universities have a policy on how to use AI for either group. And even less of those universities actually have any formalized structure for AI, like a ChatGPT.edu license or a Google Education license.” (02:51)

These overarching licenses are vital because they provide safer environments, protect intellectual property (IP) rights, and enhance security. Without them, universities are left trying to build infrastructure while the AI market races ahead. This creates a significant gap between the reality of AI usage on campus and the institutional frameworks governing it.

Integrating AI While Fostering Critical Thinking

A key challenge for universities is integrating AI while retaining and promoting critical thinking skills. Oliver believes the simple reality is that there isn’t enough data yet to fully understand AI’s impact. There’s an absence of qualitative studies and a lack of knowledge about what truly happens behind the scenes.

Some universities are proactively conducting experiments within modules to involve AI in the classroom while preserving learners’ critical thinking skills. This requires a complete rewrite of the curriculum, including assignments and case studies, all of which can now be “gamed” or carried out using AI. With all these factors to consider, many schools are meeting AI with resistance. 

However, Oliver advises, “Don’t try and ban it. You have to acknowledge it and then build it into your assessment process.” (04:44

Achieving these changes while maintaining critical thought is incredibly difficult, as AI can replace many traditional functions. Oliver poses the question AI raises in a learning context, “Have you bypassed the human in that learning process, and is the output actually worth the paper it’s written on?” (05:02

Using AI to augment learning is a complex balancing act. Not to mention, many universities face resource and staff constraints. While Oliver acknowledges the great amount of additional work these rewrites would take, he insists it won’t be in vain. AI integration is already setting apart the schools that are getting ahead and those falling behind. Adapting to AI now can help universities stay ahead in the long run.

The Future is Now: Embracing Constant Change

The rapid evolution of AI raises questions about the timing of pursuing a degree. Oliver argues there’s “no point delaying” your education. We simply don’t know what the market will look like even a year or two from now, and this lack of predictability is going to remain.

One thing is certain: education will keep changing. The market will continue evolving, perhaps more rapidly than ever before. The most important thing for students is to dive in, be open-minded, and explore the available tools and opportunities. Oliver notes that there is a difference between solely relying on AI to do coursework and cut corners, and using AI as a tool and study resource. To succeed in an AI world, you must be open to expanding your knowledge and ability to think. Not to mention, graduates will need to continuously upskill to keep up with tools and market evolution throughout their careers.

AI as an “iPhone Moment”

Oliver likens the current AI revolution to the advent of the internet or the iPhone moment. In the past, those who embraced PCs, email, and company websites gained a significant advantage. Today, a company without a website is unimaginable.

He stresses, “It’s a case of if you don’t embrace it, if you don’t stay on top of the wave, you’re going to fall behind and it can become very difficult to catch up.” (08:31) This is not merely an optional upgrade; it’s a fundamental shift.

Reshaping the Job Market and Required Skills

In the age of AI, the job market is changing rapidly. So what does Oliver predict will change?

“I don’t see mass unemployment, but I do see mass change of the need for skills. There will be jobs invented that didn’t exist 5 years ago, and we actually can’t imagine what those jobs are going to be in 5 years.” (09:02)

A striking example is the “prompt engineer” role. When AI tools like ChatGPT first became popular, people realized that effective use of GenAI required specific prompting skills, leading to a buzz about prompt engineering jobs. However, this buzz lasted only about 12 months. AI tools have quickly become their own best prompt engineers, adapting to human needs faster than humans could adapt to AI. The core skill of crafting an accurate prompt for a usable outcome has become a common skill required by everyone, much in the same way that Google search results improve based on an effective search query. And now, AI is getting better at interpreting what you likely meant, providing results even with less precise queries. 

This rapid obsolescence of a newly created job highlights the dynamic nature of skills in the AI era.

The Evolution of Business Schools

Business schools, in particular, must evolve to stay relevant. The “old model” from just 5-10 years ago is rapidly falling out of fashion. There’s an absolute need for business schools to modernize how, what, and where they teach. The COVID-19 pandemic inadvertently prepared institutions by forcing them to incorporate hybrid, blended, and online learning. While not all universities got it right, those that did are now powering ahead with AI integration.

Education will always be needed. However, the critical question for business schools, and all educational institutions, is how to adapt and live with AI in this new environment.

AI in Higher Ed: Not An Upgrade But a Paradigm Shift

The insights from Oliver Matthews make it clear: AI is no longer on the horizon; it is embedded deeply within the fabric of university life. From how students learn and complete assignments to how faculty develop curricula, AI has transformed daily operations. 

This goes beyond a technological upgrade; it’s a fundamental paradigm shift demanding immediate, strategic action from higher education institutions. The failure to embrace this change, develop comprehensive policies, and integrate AI proactively into the curriculum while nurturing critical thinking will leave universities and their graduates ill-prepared for a rapidly evolving world. 

The time for deliberation is over; the era of active adaptation and bold innovation in AI in university settings is already here. Universities must lean into this new reality, or risk becoming relics in an age defined by intelligence, both human and artificial.

Stay ahead of industry trends with our student insights from MBAs all over the world.