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Preparing K-12 and higher education IT leaders for the exponential era

Survey: Higher Ed AI Adoption Faces Financial, Policy Hurdles

A new EDUCAUSE study reveals that while AI is becoming a strategic priority in higher education, cost and policy development, especially at small schools, still hinders widespread implementation.

A lit-up ball floats over a laptop next to books and a graduation cap in a library.
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Artificial intelligence is becoming a strategic focus in higher education, but financial constraints, policy gaps and a growing digital divide threaten to slow its adoption, according to the 2025 EDUCAUSE AI Landscape Study.

Of nearly 800 respondents from higher education institutions surveyed in November 2024, 57 percent said their school now considers AI a strategic priority, up from 49 percent last year. As such, many colleges are prioritizing faculty and staff training to keep up with AI’s expanding role in education.

EDUCAUSE reported that more than half of institutions are already using AI to support curriculum design (54 percent) and automate administrative workflows (52 percent). Most respondents estimated that students use AI even more than faculty do, primarily to get answers to problems, proofread work and summarize content.

However, widespread use among faculty and students alike is tempered by challenges with funding and policy development.

Only 2 percent of institutions are supporting AI initiatives through new sources of funding, and many executive leaders underestimate the financial burden associated with AI implementation.

While 39 percent of institutions now have AI-related acceptable use policies — up from 23 percent last year — only 9 percent of respondents said their institution’s cybersecurity and privacy policies adequately address AI-related risks.

“The majority of respondents (55 percent) indicated that AI strategy is currently happening in pockets around the institution, suggesting opportunities for many institutions to develop a more holistic, unified approach to AI,” the report said.

The AI Landscape Study also highlights a widening digital divide in AI adoption. Larger institutions are more likely to have an acceptable use policy in place and view AI as an investment rather than a cost. Larger institutions reported varied areas of focus for strategic planning, from increasing collaboration across the institution to providing training on AI tech and skills.

“This gap is particularly conspicuous in areas requiring robust internal resources and infrastructure: funding AI licenses; offering AI support from IT; and creating AI applications and new AI-focused technology infrastructure,” the report said.

Smaller institutions were more likely than larger ones to rely on upskilling existing staff to support their institution’s need for AI-related skills, though very few institutions of any size reported focusing primarily on hiring new staff.

The report emphasizes the need for institutions to continue investing in resources and policies to support sustainable AI adoption. In light of discrepancies between small and large institutions, the report encourages larger schools to document successes and challenges, and share that information with peers across higher education. For smaller schools, it suggests building connections with peer institutions to share resources and knowledge.
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