The EDUCAUSE AI Landscape Study of 2025 presents a clear picture of the mounting challenges faced by higher education institutions in adopting artificial intelligence (AI). Although AI is increasingly becoming a strategic priority, especially among larger institutions, financial constraints and policy development remain significant barriers, particularly for smaller colleges and universities.
The study surveyed nearly 800 higher education respondent institutions in November 2024 and found that 57% now consider AI a strategic focus, marking an increase from the previous year. This shift is reflected in the emphasis placed on faculty and staff training as educational institutions aim to integrate AI more deeply into their curricula and operations. AI is being utilized to streamline curriculum design and automate administrative tasks, with roughly 54% and 52% of institutions engaging in these activities, respectively.
Despite this prioritization, the rollout of AI technologies is hampered by funding challenges. Only a small fraction of institutions are sourcing new funding for AI initiatives, with many underestimating the financial demands involved. This underfunding extends to necessary policy development covering cybersecurity and privacy, with only 9% of institutions feeling adequately prepared for AI-related risks.
One stark finding of the study is the widening digital divide between larger, well-resourced institutions and their smaller counterparts. Larger schools are more likely to have AI policies and perceive AI as a valuable investment, thus gearing strategies towards long-term AI integration. These institutions benefit from diverse strategic focuses, including fostering institutional collaboration and providing comprehensive AI training resources.
Conversely, smaller institutions often depend on upskilling current staff to bridge the AI skills gap, with few able to hire new specialists due to budgetary constraints. This causes a slower pace of AI adoption which could potentially widen existing educational and technological disparities.
The EDUCAUSE report urges institutions to focus on resource allocation and robust policy development to sustainably integrate AI. It encourages larger institutions to share their insights and strategies with smaller schools that may lack the resources necessary to independently innovate. For smaller colleges, developing networks for sharing expertise and resources is critical to overcoming these entrenched obstacles.
