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AI²: Why AI in higher education isn’t what you think it is
The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. Through hundreds of conversations with college presidents and my work with institutions across the globe, I’ve observed a powerful dynamic shaping the success or failure of digital transformation in higher education. As we progress through the first few months of 2025, I’ve been reflecting on the dynamic at this pivotal time in higher education. Before institutions rush the doors of modernization and leap into this new wave of artificial intelligence, they must first step back and acknowledge a different type of AI—alignment and inertia. Institutional inertia First, let’s start with inertia, because the reality is, it’s always easier to do nothing than to drive change. Organizational inertia acts as a constant force against change, manifesting itself in ways that directly impact an organization’s ability to evolve and be healthy. In the context of higher education, where there are often competing priorities, technology projects that should take months stretch into years. Decision processes become mired in endless approval cycles. Resources remain locked in legacy systems while innovation initiatives slowly die in committee. Meanwhile, competitors advance, and market opportunities slip away. Sadly, the cost of this inertia compounds over time, creating a widening gap between institutional capabilities and student expectations. When technology projects face multiple delays, institutions lose more than time and money—they lose their place in line for their competitive position. We see this even more when an institution prioritizes its modernization project to start with its administrative areas rather than those directly affecting the student experience and their ultimate success. I had this conversation with a top HBCU leader in Alabama which is gearing up to modernize its enterprise and student systems. He called me to announce that his strategy to compete and ensure his students had the best experience and graduated on time was to start with their student systems first. He just plain got it, telling me that our student information system would help them drive the outcomes they need. Today’s modern learner is expecting seamless digital experiences and will choose institutions that better meet their needs. We saw this clearly in our recent Student Voice Report that showed 92% of students surveyed expect to access all student account services in one place. At the same time, faculty was frustrated with outdated tools, while staff waste countless hours on an abundance of manual processes that could be automated (stating that this is the way they’ve always done it). The resulting impact on enrollment, retention, and institutional reputation creates a downward spiral that becomes increasingly difficult to reverse. It also traps valuable resources that could be directed to higher impact areas, from student mental health services to career coaching innovations, to addressing the imbalance of student-to-advisor ratios. Leadership alignment Inertia sets up like quicksand when one variable is missing—alignment. Leadership alignment provides the essential counterforce to institutional inertia. When presidents achieve true alignment from their board, leadership team, and endowment partners, they create momentum that can almost always overcome even the strongest resistors. This type of multi-stakeholder alignment accelerates decision making, ensures resources flow to strategic priorities, and empowers change champions throughout the organization. Rather than avoiding resistance or waiting for the “right time” that often never comes, aligned leadership teams address it proactively in a constructive, outcomes-based, and student-first mindset aligned to their strategic priorities. Presidents face the challenging task of building these aligned teams while managing the constant drag of inertia. Some achieve this by bringing in trusted leaders who share their transformation vision. Others invest time building coalitions with existing team members, carefully assessing their capability and commitment to change. But the best leaders do one thing that trumps all others—they lead with the mindset of putting their students first. When leaders do this, there is always a sense of urgency and action because students can’t and won’t wait! Alignment helps overcome inertia So, what is a president to do with their board? If they are lucky, they have recruited leaders with a bias for transformation and action, but often this is not the case. The reality is that the board plays a particularly crucial role in gaining alignment and support for an institution’s strategic goals and must not be overlooked. As higher education becomes i
The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more.
Through hundreds of conversations with college presidents and my work with institutions across the globe, I’ve observed a powerful dynamic shaping the success or failure of digital transformation in higher education. As we progress through the first few months of 2025, I’ve been reflecting on the dynamic at this pivotal time in higher education.
Before institutions rush the doors of modernization and leap into this new wave of artificial intelligence, they must first step back and acknowledge a different type of AI—alignment and inertia.
Institutional inertia
First, let’s start with inertia, because the reality is, it’s always easier to do nothing than to drive change. Organizational inertia acts as a constant force against change, manifesting itself in ways that directly impact an organization’s ability to evolve and be healthy. In the context of higher education, where there are often competing priorities, technology projects that should take months stretch into years. Decision processes become mired in endless approval cycles. Resources remain locked in legacy systems while innovation initiatives slowly die in committee. Meanwhile, competitors advance, and market opportunities slip away.
Sadly, the cost of this inertia compounds over time, creating a widening gap between institutional capabilities and student expectations. When technology projects face multiple delays, institutions lose more than time and money—they lose their place in line for their competitive position. We see this even more when an institution prioritizes its modernization project to start with its administrative areas rather than those directly affecting the student experience and their ultimate success.
I had this conversation with a top HBCU leader in Alabama which is gearing up to modernize its enterprise and student systems. He called me to announce that his strategy to compete and ensure his students had the best experience and graduated on time was to start with their student systems first. He just plain got it, telling me that our student information system would help them drive the outcomes they need.
Today’s modern learner is expecting seamless digital experiences and will choose institutions that better meet their needs. We saw this clearly in our recent Student Voice Report that showed 92% of students surveyed expect to access all student account services in one place. At the same time, faculty was frustrated with outdated tools, while staff waste countless hours on an abundance of manual processes that could be automated (stating that this is the way they’ve always done it). The resulting impact on enrollment, retention, and institutional reputation creates a downward spiral that becomes increasingly difficult to reverse. It also traps valuable resources that could be directed to higher impact areas, from student mental health services to career coaching innovations, to addressing the imbalance of student-to-advisor ratios.
Leadership alignment
Inertia sets up like quicksand when one variable is missing—alignment. Leadership alignment provides the essential counterforce to institutional inertia. When presidents achieve true alignment from their board, leadership team, and endowment partners, they create momentum that can almost always overcome even the strongest resistors. This type of multi-stakeholder alignment accelerates decision making, ensures resources flow to strategic priorities, and empowers change champions throughout the organization. Rather than avoiding resistance or waiting for the “right time” that often never comes, aligned leadership teams address it proactively in a constructive, outcomes-based, and student-first mindset aligned to their strategic priorities.
Presidents face the challenging task of building these aligned teams while managing the constant drag of inertia. Some achieve this by bringing in trusted leaders who share their transformation vision. Others invest time building coalitions with existing team members, carefully assessing their capability and commitment to change. But the best leaders do one thing that trumps all others—they lead with the mindset of putting their students first. When leaders do this, there is always a sense of urgency and action because students can’t and won’t wait!
Alignment helps overcome inertia
So, what is a president to do with their board? If they are lucky, they have recruited leaders with a bias for transformation and action, but often this is not the case. The reality is that the board plays a particularly crucial role in gaining alignment and support for an institution’s strategic goals and must not be overlooked. As higher education becomes increasingly technology-dependent, boards must expand their oversight beyond traditional areas to ensure modernization serves student needs while supporting the institution’s mission.
Technology can no longer be an afterthought and it can’t fromdecisions made in facilities and buildings committees. It must be front and center as a part of institutional strategic planning. Strong board support empowers presidents to overcome inertia by approving necessary resources, supporting difficult leadership decisions, and maintaining focus on long-term sustainability despite short-term pressures.
When institutions lack this leadership alignment, inertia wins the day. Projects stall in endless committees while resources remain trapped in maintaining legacy systems. Innovation initiatives become diluted in attempts to maintain the status quo, and departmental interests regularly override institutional priorities. The result is a gradual erosion of competitive position that may go unnoticed until an institution finds itself unable to compete for the students they once attracted.
The stakes are particularly high right now as artificial intelligence reshapes higher education in ways that we cannot even imagine. Institutions that struggle with basic technology implementations will find AI adoption nearly impossible. The technology itself, no matter how promising, cannot overcome the gravitational pull of institutional inertia.
Success in digital transformation requires mastering both types of AI. While artificial intelligence promises transformation, alignment provides the force to overcome inertia and make even the toughest transformation possible. In the race to embrace AI, remember: The most crucial intelligence isn’t artificial—it’s aligned. Only through strong alignment can institutions generate enough momentum to overcome inertia and create meaningful change that serves students, supports faculty, and ensures institutional sustainability in an increasingly digital world.
Laura Ipsen is CEO of Ellucian.
