Similar to other sectors, higher education leaders are grappling with both the promise and uncertainty that GenAI represents. Questions that not long ago centered on "what is this technology" have evolved to questions focused on the "how." How can we maximize the value from this technology? How can we use it to advance effective enrollment or student success? How can we ensure we have the right approach and talent necessary to implement our GenAI agenda? What are acceptable uses of AI for students during their coursework? How can AI be utilized to impact our staff and student experience?
Each institution is unique and at different stages in their GenAI journey. Some could reasonably be described as thriving, readily embracing new technologies and possessing the means and resources to enact their agenda. Others are still striving to reach the necessary level of technological prowess to drive forward in 2025. Faculty at many institutions are being sought after to advise legislators and leaders in their communities about risks and opportunities with AI. Nevertheless, institutions are grappling with where the greatest impacts with the least number of risks are with AI in their operations. Regardless of where any institution finds itself in their GenAI journey, one thing is clear: Much work remains to fully harness the benefits of GenAI and navigate the intricate landscape it represents.
Higher education leaders have many actions to consider, but here are four key ones that can help turn disruption into a path for success:
1. Establish a sound policy framework
The road map to success with GenAI begins with a clear vision and a defined policy framework. This challenge is not unique to higher education, as questions abound regarding frameworks for GenAI across the economic landscape. What is without question is that colleges and universities must focus on developing policies and formal guidelines regarding the use of GenAI to deliver the institution’s mission. Addressing important issues such as permissible use, bias, privacy, security and accountability lays a strong foundation for the ethical use of GenAI. Expertise and reliable resources are essential in evaluating the effectiveness of these policies and ensuring they align with the institution's mission.
2. Adopt trusted AI principles
If GenAI were a house, core principles would be part of the foundation. We believe fairness, transparency, explainability, accountability and data integrity ensure that GenAI is used in a safe, trustworthy and ethical manner.
3. Re-examine target operating models
Policies addressing AI risk cannot exist in isolation. They must be integrated into the institution's target operating models (TOMs). TOMs serve as blueprints or instructions for achieving organizational objectives, encompassing technologies, processes, people, governance and performance indicators. With the introduction of disruptive technology like GenAI, institutions must adjust these blueprints to ensure that policies, performance measures, training and budget allocations align with their broader modernization strategy.
4. Foster a culture of collaboration
Last, but certainly not of least importance, higher education institutions possess a unique advantage in their culture of continuous learning and collaboration. By facilitating collaborative events and initiatives among and within institutions, leaders can leverage each other’s strengths, share best practices, thrive in the GenAI era and drive innovation in the higher education sector. Proactive change management and communication are also vital to nurturing the positive impact of AI.
The bottom line is that GenAI is a transformative force poised to shape the future of higher education. By embracing it, institutions can enhance their value and operations, benefiting all campus constituents including students, faculty, alumni, donors, administrators and their broader communities. This technology presents a chance to turn disruption into growth, innovation and continued excellence. The time for action is now.
Chad Bandy is the managing director of higher education advisory for the professional services company KPMG LLP.
Saravanan Subbarayan is the managing director of managed modernization services advisory for higher education technology at KPMG LLP.
