Why Colleges Must Take the Lead in AI – A Wake-Up Call for India’s Education Sector
Artificial Intelligence (AI) has quickly become one of the most powerful forces shaping higher education today. But are educational institutions truly ready to harness it? A recent survey conducted by Inside Higher Ed and Hanover Research paints a sobering picture—one that should serve as a serious alert not just for universities abroad, but for Indian institutions as well.
The 2025 survey, which gathered responses from over 100 chief technology and information officers (CTOs) across U.S. colleges, revealed something critical: one in three tech leaders say their campus is far more reliant on AI than it was just a year ago. Yet, despite this growing dependence, many institutions still lack a clear and comprehensive strategy to govern its use.
A Fragmented Approach to AI Governance
What’s troubling is the fragmented way in which AI is being handled. Only a small number of colleges consider investments in generative AI a top priority, and just 19% of CTOs feel that higher education is managing AI effectively. In fact, 31% of institutions surveyed haven’t implemented any formal AI policies—nothing that covers its use in teaching, research, administration, or student services.
Chris van der Kaay, a former CIO and now a higher education consultant, warns that this lack of structure is adding to the existing chaos in the sector. According to him, unless colleges take control of how AI is deployed, they risk ceding that control to private corporations. In simpler terms: If educational leaders don’t lead the way, someone else will—and that might not be in the best interest of students or academic autonomy.
Technology Leaders Left Out of Strategy Talks
The survey also revealed that while 59% of CTOs are part of their institution’s executive leadership, nearly half believe their insights are not being utilized effectively in strategic planning. This disconnect becomes even more concerning when we realize that demand for online education is increasing, but colleges still lack strong AI governance frameworks to support it.
Only 11% of tech leaders said their institution has a well-defined AI strategy. And over half of them admitted their campuses are looking at AI in isolated, case-by-case ways instead of thinking holistically. This scattered mindset risks turning AI into just another tool—when in reality, it’s a transformative force that demands enterprise-level thinking.
Van der Kaay put it bluntly: “AI is not just another tool to help us do our jobs faster. It’s making us rethink why we do what we do.” That’s why a piecemeal approach—relying on outdated processes and policies—isn’t going to cut it.
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Security Concerns in a Hyper-Connected Era
The arrival of AI also brings new cybersecurity challenges. With AI tools enabling more sophisticated attacks, only three out of ten CTOs feel confident in their institution’s ability to protect against data breaches or ransomware. And it’s not just about buying the latest software.
As van der Kaay rightly points out, cybersecurity needs to be balanced with academic freedom. IT departments can’t simply lock systems down without first understanding how that impacts the learning experience. Cybersecurity has to be woven into the institution’s broader technology strategy, involving faculty, students, and administrators alike.
External Pressures and Shrinking Budgets
Another serious issue is financial instability. Under the current U.S. administration, federal research funding to universities has been slashed, affecting even well-funded institutions. At the same time, big tech companies are aggressively promoting AI-driven tools as solutions to boost student success—but not everyone in academia is convinced of their effectiveness.
Despite budget constraints, colleges are under pressure to innovate quickly. Yet, according to the survey, while 68% of CTOs see the importance of using data to support student success, and 59% prioritize AI in teaching and learning, very few institutions have made real progress in digital transformation. Only 39% have even set clear goals, and none have completed the journey.
Why? The biggest barriers cited were a lack of skilled IT staff, limited funding, and poor data integration. These are challenges Indian institutions are all too familiar with.
Data Isn’t Enough—Action Is What Counts
Glenda Morgan, an ed-tech market analyst, put it well: “Data alone tells you what’s wrong. But taking the right action is the hard part.” The recent push in U.S. policy to hold colleges accountable for unpaid student loans has added urgency to this issue. Institutions must act on data—not just collect it.
That means aligning AI and tech strategies with the student journey. It’s not about which tool is trendy, but about which one actually helps students learn better, graduate faster, and prepare for the workforce.
A New Era of AI Literacy in Schools
The conversation around AI isn’t limited to universities. A new executive order in the U.S. has pushed for AI education to begin in K-12 schools, supported by public-private partnerships. This move is significant. While schoolteachers may be required to integrate certain tools, university faculty still have more freedom to decide how (or if) they use AI in the classroom.
That freedom can be a strength—but only if supported by clear policies and funding. Marc Watkins from the University of Mississippi believes institutions will soon need to approach state legislatures for support in preparing both students and teachers for an AI-driven future.
He’s right: AI isn’t going anywhere. And colleges that don’t act now will struggle to keep up. The future workforce demands AI-literate graduates, and we can’t achieve that without AI-literate educators.
Access Gaps and the Need for Unified Policies
Some universities, like the California State University system, have already begun providing AI tools to all students. But the survey shows that nearly half of colleges still don’t offer such access. This digital divide will only grow unless institutions invest in AI policies that are not only visionary but also actionable.
As Watkins warns, having a policy on paper isn’t enough. “If every teacher or department sets their own AI rules, it creates chaos for students,” he said. How can students be expected to develop AI skills when their educators still view it as cheating?
Final Thoughts: Time to Lead, Not Follow
The message is clear: AI is here, and it’s not a passing trend. Colleges and universities—especially in India—must take charge of how they engage with this technology. It’s no longer about if we integrate AI into education, but how well we do it.
Institutions must create cohesive policies, build internal capacity, and make digital transformation a serious priority. Otherwise, we risk falling behind—not just in technology, but in preparing our students for the world they’re about to enter.
The leadership imperative is now. And the question is: Will colleges rise to meet it?
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