The impact of Artificial Intelligence (AI) on Higher Education (HE) is profound and far-reaching. While there’s likely to be an ongoing conversation about the moral and ethical implications of AI’s growing influence – not least its potential for misuse and misdirection – new innovations are rapidly reshaping how universities teach, operate, and expand internationally. For institutions exploring global online provision and digital campus models, AI is increasingly becoming a critical enabler of scale, quality and competitiveness.

For the last few years, AI has been playing an increasingly important role in the day-to-day operations of colleges and universities. Its many practical applications – including streamlining administrative processes, strengthening critical thinking skills and enhancing learning experiences – have evolved into something altogether more nuanced. Once a useful servant, AI has now become a sophisticated collaborator, particularly in the context of online programme delivery and student support.

Indeed, if we look at advanced systems like DeepSeek, we can see how AI technology has rapidly gained ground in the sector, transitioning from humble search engine to interactive research partner – a seemingly boundless resource that’s able to both parse complex problems and stimulate creativity.

In 2023, market research organisation Global Market Insights predicted that Artificial Intelligence (AI) in the Education Market would expand exponentially over the next decade, resulting in a market value of $30bn by 2032, as Edtech organisations continue to disrupt traditional technologies. For universities considering partnerships with OPMs or digital campus providers, this growth signals both opportunity and pressure to innovate quickly.

Evaluating AI in a Higher Education context

The idea that AI has evolved from an assistive technology into a platform for meaningful collaboration represents a significant shift in tenor, especially for research-driven HE institutions. But the implications go well beyond research – AI is redefining how universities launch, market and scale online programmes globally.

For many, the ‘gateway’ AI experience is likely to be Generative AI – a tool that is already transforming the teaching and learning process. Large language models (LLM) like ChatGPT, Gemini, and Llama are making project conception, research and citation attribution considerably more intuitive and less time consuming. Their speed and capacity across a wide range of real-life situations make them a rich resource when reviewing papers, identifying research gaps and positing research hypotheses.

For HE providers, GenAI apps are also helping to deliver personalised programmes – including assessment, assistance and tutoring options – that promote highly effective learning, as well as offering students multiple ways to interface with HE institutions. AI-driven Learning Management Systems (LMS) and virtual tutors are improving the student experience, bridging knowledge gaps and offering more tailored support at scale. This is particularly valuable in the context of global online cohorts, where AI can ensure a consistent and personalised experience for students regardless of geography.

The use of AI-assisted machine learning and predictive analytics, based on student data, behaviour patterns and historical trends, can also enable early intervention strategies for those likely to require more targeted support to achieve their goals. These applications are particularly valuable as remote and hybrid study models expand, even in universities with a predominantly on-campus population.

How AI addresses Higher Education specific problems 

There’s a plethora of current and emerging real-world applications for AI-enhanced services, on campus and off. For universities entering global markets, these same tools can help overcome the operational challenges of scale, localisation, and student engagement across regions.

AI-powered chatbots deploy natural language processing (NLP) capabilities to process student queries, streamline admissions processes and, in some cases, provide automated grading and feedback. Many universities also use facial recognition programs to track attendance, detect plagiarism and deliver immersive lab-based learning experiences.

Virtual lab-based (V-lab) learning has proven to be particularly successful in situations where lab opportunities are restricted – like they were at the height of the pandemic. The appetite for V-lab learning continues to grow, despite universities largely returning to campus-based provision.

The Department of Chemical Engineering at Imperial College, London, continues to conduct lab-based teaching – ViRSE – via Microsoft HoloLens technology and augmented reality (AR), allowing students to connect and interact from remote locations. Similarly, Brighton and Sussex Medical School (BSMS) is delivering a Virtual Reality in Medicine and Surgery (VriMS) training platform that was established in 2022, in a bid to mitigate the impact of the Covid pandemic on surgical training. A recent study showed that using virtual learning environments positively impacted ‘student engagement and academic literacy’, and was a useful tool for improving ‘equitable access to educational resources’, so long as thought was given to making these resources accessible and inclusive.

Higher Education sector opportunities and challenges

There is little doubt that AI can be used to unlock new growth opportunities for universities, such as:

· Improving global reach and inclusivity – AI can support international student recruitment by enhancing accessibility, personalisation and support for diverse cohorts.

· Expediting research – Deploying AI to optimise data analysis, literature synthesis and hypothesis testing could lead to more efficient and impactful research.

· Boosting operational efficiency – AI-driven campus-management tools will help HE institutions improve resource allocation, rationalise the maintenance cycle and streamline administrative workflows.

· Enabling faster, smarter global programme launches – For institutions partnering with OPMs or digital campus providers, AI can reduce time-to-market by streamlining content development, localisation and student support.

However, AI adoption in HE comes with its own challenges, including:

· Ethical concerns – Bias in AI models, data privacy issues and concerns about AI-generated academic work raise tricky ethical dilemmas for HE institutions.

· Infrastructure and costs – Implementing AI solutions requires substantial investment in technology, training, and data security at a time when universities are feeling the pinch.

· Regulatory and policy issues – Naturally, universities must ensure compliance with data protection and copyright laws. But they must also establish guidelines for AI use in an HE setting.

A new paradigm?

However thorny the challenges, AI is already reshaping the HE landscape. Recent developments have already made advanced educational tools available to institutions of all sizes, helping drive changes that are impacting curricula, infrastructure and the student/faculty interface. In the OPM and digital campus space, AI is not only enhancing the student experience but also enabling institutions to expand their global footprint with agility.

Immense benefits in learning, research and administration are predicted. For universities with international ambitions, AI also offers an enabler for scaling global operations and supporting students across multiple regions.

AI’s implementation must be strategic, though, if HE institutions are to successfully balance progress with ethical considerations. Organisations should prepare for a rapidly evolving future by investing in faculty training, ethical AI frameworks and continuous innovation. Those that embrace AI with energy and vision will position themselves as sector leaders, delivering enriched learning experiences and fresh opportunities in a brave new world.

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