With artificial intelligence transforming sectors worldwide, higher education is no exception. AI technologies are reshaping how students learn, how teachers teach, and how schools operate. The role of education leaders is evolving alongside these changes, requiring a new set of competencies to leverage AI effectively, ethically, and responsibly. But are today’s leaders prepared to meet this demand?

For a forward-thinking higher education leader, understanding AI basics is more than a technical advantage; it’s a necessity. Almost 65% of business leaders cited investments in AI technology as their primary focus in 2024. However, only 44% of leaders are actively engaged in growing their knowledge of generative AI technology.

AI literacy is quickly becoming the next must-have skill for education leaders to stay relevant, strategic, and responsive to the needs of their schools, communities, and future learners. Let’s explore why AI literacy matters, the skills leaders should prioritize, and how to overcome common challenges to ensure your institution isn’t left behind.

AI in Higher Education: From Enrollment to Personalized Learning

The applications of AI in higher education are diverse and growing quickly. From automating administrative processes to supporting personalized learning experiences, AI is changing how educational institutions function at every level.

In many universities, AI-powered systems streamline tasks like enrollment, scheduling, grading, and retention. For example, Georgia State University implemented predictive analytics to identify and support students at risk of dropping out, generating 51,000 meetings between advisors and students to discuss specific issues and increase students’ chances of graduating. AI is not just an enhancement—it’s improving real outcomes in measurable ways.

As more schools adopt AI tools, education leaders are expected to understand the technology’s potential and limitations. Without a basic grasp of AI, leaders risk missing out on meaningful innovations that can benefit their institutions. Staying current with AI trends and practices is crucial to avoid falling behind. Without AI literacy, leaders may overlook ethical concerns like data privacy and algorithmic bias, which could harm their institutions’ reputation and student trust.

The Benefits of AI Literacy for Today’s Leaders

Being AI literate means having the foundational knowledge needed to make informed decisions about AI tools, initiatives, and policies. Here are three reasons why this skill matters now more than ever:

● Informed Decision-Making. Leaders with AI literacy can critically assess AI tools and their relevance to institutional goals. For example, understanding how a predictive analytics tool works allows a leader to ask insightful questions, recognize potential limitations, and weigh the long-term benefits and risks.

● Navigating Ethical and Privacy Concerns. AI can raise ethical concerns, from potential biases in algorithmic decision-making to student data privacy. EDUCASE found that 82% of higher education stakeholders are most concerned about data security when integrating AI. Leaders who understand these issues are better equipped to navigate regulations and mitigate risks.

● Impacting Leadership Credibility. When leaders are knowledgeable about AI, they inspire confidence among faculty, staff, and students. Teams are more likely to trust and engage with a leader who demonstrates expertise and understanding in managing new technologies responsibly.

Core AI Skills Education Leaders Need

AI literacy isn’t about becoming an AI expert—it’s about mastering the essential concepts to make better strategic decisions. Here’s a breakdown of the most relevant AI skills for leaders in higher education:

● Foundational Knowledge. Education leaders should start with an understanding of machine learning, data analytics, and other core AI concepts. Knowing the basics of how these technologies work can enable leaders to engage in conversations about potential applications and limitations within their institutions.

● Education-Specific AI Tools. In higher education, AI applications are distinct from those in other industries. Leaders should become familiar with predictive tools that assist with student retention, AI-driven tutoring systems, and intelligent learning platforms that tailor content to individual needs. Familiarity with these tools enables leaders to make informed decisions about which systems could have the most positive impact on student outcomes.

● Ethical Considerations. As AI introduces ethical questions around fairness and privacy, it’s critical for leaders to understand the frameworks that guide responsible AI use. This includes avoiding biases in algorithms, ensuring data privacy, and adhering to any relevant regulations, such as the Family Educational Rights and Privacy Act (or FERPA) in the U.S.

Overcoming Challenges to Building AI Literacy

Despite the importance of AI literacy, many higher education leaders face barriers to building this skill set. Limited resources, rapid technology changes, and the lack of comprehensive AI training can make it challenging to stay up to date. However, some practical steps can make a big difference:

1. Investing in Training and Workshops. Professional development opportunities are key to helping leaders gain confidence in AI. Many organizations host conferences, such as ISTE and EdTech Week, with AI-focused workshops tailored for educators and administrators. These events provide leaders with a foundation in AI and practical insights they can bring back to their institutions.
2. Forming Partnerships With Tech Experts. Partnering with technology firms or AI experts can help schools implement AI tools responsibly and strategically. For example, Ivy Tech Community College partnered with Google Cloud to develop an AI-driven system that identifies students needing academic support, boosting retention and success rates. These kinds of partnerships can accelerate innovation while ensuring the ethical and effective use of AI tools.
3. Learning From Success Stories. Observing successful AI initiatives in other educational settings can provide a roadmap for your own institution. Take the example of Arizona State University, which implemented an AI-driven platform to support student learning through predictive analytics and personalized recommendations. By analyzing student performance data and tailoring support to individual needs, ASU has seen notable improvements in student engagement and academic outcomes.

Future-Ready Higher Education Leaders Prioritize AI Literacy

As AI reshapes the landscape of higher education, AI literacy is not merely a technical skill; it’s an essential leadership skill for future-ready institutions. Leaders who invest in understanding AI’s capabilities, ethical concerns, and education-specific applications are not only better positioned to make informed decisions, but they are also more likely to inspire trust among faculty and students.

With AI literacy embedded in leadership, schools can foster innovation while safeguarding the ethical standards that define quality education. Those who act now to build these skills will be the leaders who guide their institutions toward a future that’s both technologically advanced and ethically sound.

About the Author

Zach Varga serves as the Vice President of Client Success at Liaison, where he collaborates with higher education institutions and partnerships, providing solutions to enable the attainment of enrollment and student success goals. He leads the Client Success, Implementation, Technical Support, and Managed Services teams for the TargetX and Othot solutions within Liaison. Varga brings over 10 years of leadership experience in customer success, project management, and operations from various industries, including ed tech, robotics, transportation, and more.