AI in higher education: enhancing institutional performance

The integration of AI in higher education is redefining academic practices, enhancing performance for staff and students alike.

From streamlining administrative tasks and enabling data-driven decisions to optimising curricula and personalising learning, AI empowers universities to become more efficient, adaptive, and outcome-focused.

Here are nine ways institutes use AI in higher education:

1. Providing personalised, real-time feedback

AI-powered feedback systems integrated into learning platforms can assess student work, such as maths problems, written assignments, and multiple-choice responses, and provide feedback instantly upon submission. This immediate guidance helps students address misconceptions while the material is still fresh.

By analysing student data such as past performance, engagement patterns, and knowledge gaps, these systems deliver personalised, targeted support.

OneAdvanced’s Assessment & Learning solution exemplifies this approach, combining AI assessment with interactive content and tailored learning. Designed for Functional Skills learning and assessment, the software uses AI to learn iteratively from previous answers, providing granular-level detail and highly accurate attainment levels.

2. Curriculum design and content development

Creating a curriculum that aligns with institutional policies, learning outcomes, student needs, and academic relevance is a complex task. AI-powered tools can assist by drafting course structures, recommending content and resources, and suggesting topic sequences, while ensuring alignment with required standards. In doing so, they help educators design curricula more efficiently and significantly reduce preparation time.

3. Academic scheduling and resource management

AI analyses room availability, faculty schedules, and student demand to create efficient, conflict-free class schedules. It also supports equitable distribution of teaching, supervision, and administrative responsibilities among faculty. Additionally, AI uses historical data to forecast course demand, enabling better planning of class sizes, section additions, and resource allocation. Overall, it improves scheduling accuracy and optimises resource utilisation.

4. Improving the learning experience

AI can make learning more engaging and effective. Multimedia content such as videos, animations, graphics, and podcasts can be generated using AI tools. These formats help make complex topics and information-heavy material like research papers easier to understand. AI also elevates practical learning by simulating real-world scenarios, such as virtual patients for medical students, or job interviews, creating immersive, risk-free environments to develop skills and real-world readiness.

5. Streamlining admissions and enrolment

Admissions season can overwhelm administrative staff with increased workload. AI tools can ease this burden by handling tasks such as filtering and prioritising applications based on pre-set criteria and verifying documents like transcripts, certificates, and IDs for authenticity. Additionally, AI-powered chatbots can manage routine admission and enrolment queries, reducing repetitive calls and emails for staff.

6. Student support and services

AI chatbots provide fast, 24/7 assistance for common student queries about registration, course selection, campus navigation, and tech support. They can also schedule counselling appointments and automate personalised notifications concerning tuition deadlines, class changes, academic requirements, and campus events. Together, these services help students stay informed, organised, and engaged.

7. Self-directed learning

AI supports self-directed learning by helping students personalise content, assess understanding, receive feedback, and plan effectively. With AI tools, students can tailor material to their preferred pace, tone, and format. Lecture recordings can be converted into structured notes. Long texts or research papers can be summarised or turned into podcasts. Practice questions and adaptive quizzes enable self-testing and progress tracking.

An example is Notebook LLM, an interactive learning companion that supports students through natural language interactions. It assists with summarisation, concept clarification, explanations, and Q&A to enhance understanding and learning.

AI can create personalised study plans based on strengths and weaknesses, generating smart schedules aligned with goals and deadlines. Some tools even simulate one-on-one tutoring by offering explanations, answering questions, and guiding students step by step.

8. Finance and budgeting

Managing finances in education involves more than balancing books. From fluctuating tuition revenues to complex infrastructure planning, institutions oversee a wide range of responsibilities, and AI can provide valuable support to manage them effectively. AI-powered automation of routine tasks such as invoicing, payment processing, reconciliation and fraud detection can greatly enhance the efficiency of finance functions. AI also enables institutions to forecast funding needs, grant spending, and tuition revenue, supporting more effective financial planning.

Recognising these benefits, finance teams are increasingly turning to AI-driven platforms such as OneAdvanced Financials, a comprehensive financial management solution with powerful automation and forecasting capabilities.

9. Enhancing education accessibility

AI has the potential to make education fully accessible. It makes translating content easier and more affordable, broadening access for learners from diverse linguistic backgrounds. It also supports students with disabilities through tools like speech-to-text, audio narration, voice-controlled navigation, real-time captioning, AI-driven sign language interpretation, and other visual accessibility features.

The growing role of AI in higher education

Adoption trends and global momentum

According to Microsoft’s AI in Education report, 86% of educational organisations globally now use generative AI, the highest among all industries surveyed. A Higher Education Policy Institute (HEPI) survey shows this trend mirrored in the UK, with 92% of students using AI tools, up from 66% the previous year.

Recognising the growing influence and potential of AI, the UK government has launched the AI Opportunities Action Plan, signalling a national strategy shift toward enhancing AI literacy and closing skills gaps. It supports higher education institutions in increasing AI graduate numbers and delivering industry-relevant skills.

AI is increasingly recognised as a transformative force across the education sector. This is evident from the prominence of AI at major academic events and higher education conferences in 2024 and 2025. These forums have highlighted innovations in edtech and the evolving role of AI in education. However, they have also raised concerns about academic integrity, ethical use, assessment practices, and student well-being. These conversations underscore the urgent need for robust AI governance frameworks that promote responsible AI use while enabling innovation.

Key drivers of AI integration

The widespread adoption of AI tools by students demonstrates their effectiveness in saving time, enhancing work quality, and improving learning outcomes. As AI becomes more prevalent, students are increasingly expecting its integration into academic programmes.

Demand for AI higher education programmes is also rising, with applications to study AI at UK universities increasing by 15% this year. This trend reflects broader industry needs, where the demand for skilled AI professionals continues to grow.

At the institutional level, rising operational costs, ongoing budget cuts, and funding deficits are forcing universities to do more with fewer resources. These financial pressures are prompting institutions to adopt AI to improve efficiency, streamline operations, and deliver services more sustainably. AI integration is shifting from a strategic option to a financial necessity.

What are the benefits of AI in higher education ?

Here are some of the key benefits institutions can gain by leveraging AI.

• Personalised learning experiences

Studies show that AI-aided and personalised learning leads to improved outcomes, including higher course completion rates, better attendance, and increased student engagement. With tools like adaptive learning systems, intelligent tutoring systems, and chatbots in the classroom, AI enables institutions to deliver personalised learning at scale, meeting diverse student needs without increasing staff workload or straining institutional resources.

• Streamlined operations and administration

AI helps institutions streamline a wide range of administrative and operational processes by automating tasks like class scheduling, admissions, student communications, financial operations, record management, HR workflows, and compliance reporting. This reduces manual workload, frees up staff time, and improves overall efficiency.

• Advanced analytics for student success

AI simplifies complex data analysis, turning raw data into actionable insights to improve student outcomes. By examining attendance, performance, and engagement through predictive analytics, students at risk of dropping out or underperforming can be identified, enabling timely, targeted interventions.

OneAdvanced’s Achievement & Performance Analysis illustrates this capability well. The software analyses student performance data to identify trends, highlight gaps, and support evidence-based decisions that benefit both staff and learners.

At the organisational level, data from student feedback, course outcomes, and job market trends can help institutions refine curricula, strengthen retention, and align programmes with real-world demands. Additionally, this data guides the strategic allocation of academic support, mental health services, and financial aid to where they are needed most.

Borders College is a strong example of how data-driven insight can improve student outcomes. With support from OneAdvanced’s Education Portfolio, the college has boosted retention by identifying learner needs earlier and acting on them effectively. Learn how Borders College is using data to drive success.