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Paper 7
Paper 7
https://www.emerald.com/insight/1059-5422.htm
AI
AI: new source of competitiveness
in higher education
Erin Hannan and Shuguang Liu
School of Business, State University of New York at New Paltz,
New Paltz, New York, USA 265
Received 26 March 2021
Revised 2 May 2021
Abstract Accepted 9 July 2021
Purpose – This paper aims to survey the current landscape of artificial intelligence (AI) applications in
higher education institutions (HEIs) and recommend future directions.
Design/methodology/approach – This paper reviews the recent trends, showcases the applications and
provides future directions through a review of current uses of AI in HEIs.
Findings – The results of this study highlight successful applications of AI technologies in three main areas
of college operation: student learning experience; student support; and enrollment management.
Research limitations/implications – This review has important implications for early adopters of AI
by HEIs in providing a competitive advantage. The limitation lies in the scope of the review. It is not
comprehensive and does not cover other areas of college operations.
Originality/value – This is the first review about AI in higher education. It is of value in building future
research and serving as a framework for AI applications in HEI.
Keywords Retention, Recruitment, Predictive analytics, Personalized learning, Chabot
Paper type General review
1. Introduction
The bar for college success is rising, and the landscape of higher education is changing.
With adult learners becoming first-time college students, diversity increasing and remote
learning growing with the COVID-19 pandemic, college administrators are under greater
pressure to effectively compete in the global field of higher education. Colleges and
universities must continuously adapt their operations to attract and retain the best students
and faculty, provide innovative resources, offer personalized learning and remain financially
viable. Amid these challenges, forward-thinking universities can integrate artificial
intelligence (AI) into their operations to set themselves apart from the competition and up
for long-term growth.
In choosing a college, students and parents expect instruction enhanced with technology,
affordable learning options, job opportunities and experiences that magnify student quality
of life. Stonkiene et al. (2015) studied the marketability of HEIs to shape student’s attitudes
based on schools’ ability to monitor their management performance, the environment of
competitors and introduce organizational changes to effectively compete. This paper will
further explore the strategic decisions to implement emerging AI technology that can create
personalized engagement to focus on students individually and provide contextual guidance
in real-time. Institutions already using AI have built it into departments like the interview
admissions process, a teacher assistant chatbot and an advising system that predicts course
Competitiveness Review: An
pass and fail rates. International Business Journal
As examined in a study by Maduro et al. (2017), maintaining identity, image and Vol. 33 No. 2, 2023
pp. 265-279
corporate reputation is vital for the survival and growth of HEIs. This can further be © Emerald Publishing Limited
1059-5422
supported by advancements in design, innovation and technology. DOI 10.1108/CR-03-2021-0045
CR The purpose of this paper is to highlight examples of AI applications in HEIs and
33,2 identify future directions to improve colleges’ competitive advantage. Current uses of AI in
HEIs were reported through an extensive review of reports by HEI institutions themselves
and AI-driven companies partnering with these universities. Research revealed current
trends of higher education AI in learning experiences, as it relates to course management
programs, instruction and student assessment; enrollment management as it relates to
266 success in recruiting, admissions and retention; and student support as it relates to
applications in advising, emotional support and career services. Specific applications of AI
programs in HEIs are showcased through a series of case studies to supply a framework for
future uses of this technology by other HEIs.
The remainder of the paper is organized as follows: Section 2 reviews the current
competitive landscape of the higher education industry and three types of general
applications of AI. The applications of the diverse forms of AI are then explored to showcase
the competitive capabilities of this technology in three main areas of higher education
operations: learning experiences (Section 3), enrollment management (Section 4) and student
support (Section 5). The paper then discusses in Section 6 the deeper divisions brought on by
AI in HEIs due to opportunity disparities for students and the reservations about the
technology, due to concerns of personal privacy violations. Section 7 concludes the paper
with a look at the future of AI technologies yet to be fully explored in higher education.
2. Literature review
2.1 Competitive landscape of higher education institutions
Higher education institutions (HEIs) must constantly implement innovative driven business
strategies to maintain a market position among intense competition driven by government
funding, internationalization and new trends toward a booming online education market.
Current research on the competitiveness of HEIs unveils the uniqueness of this market as
compared to other businesses. In which these institutions serve a traditional societal role to
deliver a professional working class while treating students as consumers with high-quality
services that they pay for (Stonkiene et al., 2015). Recommendations for assessing sources of
competitive advantage by Mainardes et al. (2011) involve the investigation of three key
factors: resources and abilities such as physical infrastructure and technology, external
factors such as government regulation and emerging threats of online colleges and the role
of stakeholders which include faculty, students and society. Changes in information and
communication technology have placed new competitive pressures on HEIs (Maduro et al.,
2017). Yet, there has been little research done on the influence of these specific factors for
competitive analysis. This paper will thoroughly explore the influence of innovative
technology on HEIs. Integration of AI across all business activities will allow schools to stay
ahead of industry trends moving toward greater technological-education integration and
better serve the needs of their stakeholders.
The current model of education is one-size-fits-all. Whether it is teaching in the
traditional classroom setting or online remote education during the recent COVID-19
outbreak, all students receive the same content that is delivered by the same instructor.
Students follow the same pace set by the instructor – when a topic is covered, how much
time is spent on a topic, and when an assignment is due. This model is necessary due to the
lack of resources, including limited instructors that lead to a high student–teacher ratio.
According to the Condition of Education Report (2020) from the National Center for
Education Statistics, the average student to faculty ratio was 14.1 to 1 in fall 2020. In this
fixed and uniformly paced system, some students complain that it is too much too fast, while
others hunger for more. Recent literature on personalized learning (Hughey, 2020) explores
its key purpose to close achievement gaps among students through active engagement AI
forms of teaching. Changes in technology must reflect changes in the current education
model that continues to open doors to transform how students can be taught, assessed and
their success predicted.
3. Learning experience
The learning experience of a student is formed and impacted by their interaction with course
content. Learning management systems (LMS) stipulates this interaction by selecting and
ordering the topics and the activities including reading, exercises and quizzes. The success
of a learner depends on collaboration among all stakeholders: learners; assistants; and
instructors. The summative assessment of learning outcomes is used to demonstrate
learners’ competency and knowledge mastery.
6. Discussion
HEIs are realizing that a digital-first strategy provides new competitive advantages.
Advanced technologies like chatbots and virtual reality will soon be the norm for staff and
students in their academics and careers. The next stage of furthering AI integration in HEIs
is not without concerns, which have left humans fearful of what it means for a superhuman
machine to be at the core of how their businesses function.
A close evaluation of student progress in test monitoring, emotional support and
academic progress provides an enriching college experience that is hyper-focused on each
student. However, schools must determine where to draw the line between personally
helping students and invading their privacy in the process of having greater hands-on
support. When collecting student data, personal information can be easily obtained, whether
it be from a college admissions interview or webcam monitoring footage when a student
takes an exam at home. Faculty and students alike might be worried about where this
information is stored and who has access to it, particularly when HEIs rely on third-party AI
platforms. The virtual test proctoring service Proctortrack stores student data up to
180 days after a test. After a cybersecurity breach with its program in 2020, Western
University students in Ontario, Canada, are demanding their school suspend services with
the platform (Rivers, 2020). Online monitoring platforms raise new concerns of the negative
impacts on students who cannot work in an optimal quiet environment for the system, such
as students with disabilities or with children at home.
Equal access to technology and digital educational resources are limited depending on
the institution and its ability to invest in the latest technology for its students. Due to the
COVID-19 pandemic, HEIs across the globe have switched to an online learning format,
CR which presents new challenges to students without access to the internet or technology to
33,2 succeed in their courses remotely. However, the digital divide in HEIs is not a new
phenomenon and the opportunity disparities based on which school a student attends are
widened with the integration of AI. Its implications for college students can lead to greater
inequalities outside of a four-year education, resulting in deeper socioeconomic divisions.
Colleges and universities in low-income communities or two-year colleges with a limited
276 budget do not have the same resources to invest in costly AI. Not only do these students
miss out on more personalized education, but they can fall behind in the digital literacy of
their peers who use professional-level software and routinely interact with AI systems.
7. Future directions
Personalized education means meeting students where they are during the day (or night),
cultivating a sense of belonging and communicating personalized messages on the channels
they prefer. A successful institution will view the student experience as a lifelong journey
that begins during the recruitment and admissions phase, extends through their time at the
institution and continues into their careers or post-graduate education. Staying connected
throughout this lifelong journey requires technology and data to coordinate across
departments – admissions, career services, health services and inside the classroom.
Institutions that fail to integrate all aspects of the college system pose a risk as they seek to
increase enrollment, engage students and maintain competitiveness in the field of higher
education.
Personalizing a curriculum for every student’s needs is not viable today, but it will be
with help of the AI-powered machines. What has been seen in the integration of process
automation, predictive analytics and chatbots across varying components of the college
system is only the beginning. In the future, a machine using computer vision technology
reads students’ facial expressions to determine whether they comprehend the lesson. With a
360-degree view of every student, institutions can gain proactive insights and personalize
the student experience at scale, boosting student and institution success. The instructor
would be able to adjust the pace of delivery, transforming from an instructor-centric
learning experience to a student-centric.
Advancements in natural-language understanding and machine learning have enabled
chatbots to gradually evolve into Intelligent Virtual Assistants (IVA). A few companies use
IVAs enriched with the deep domain knowledge to fully understand a customer’s intent and
preferences, comprehensively fulfill their needs and improve their performance over time by
learning from every interaction. While the implementation of IVA in HEIs is very limited,
the AI Teaching Assistant at Georgia Institute of Technology glimpses the future of
classrooms that one day could be entirely run by the technology without human
intervention. With help from IVA, professors would refocus their attention to create a strong
curriculum that can further be personalized and assessed through AI.
AI is not always about automation; it is also about redesigning workflow to create new
opportunities and improve the process. For example, an advising program in the not-so-
distant future would offer automated academic advising with the guidance of human
advisors. For each student, the program creates a customized study plan (updated each
semester), selects course schedules, checks student attendance and flags deficiencies.
Advisors, in turn, would serve as career and academic coaches, who have more time to
investigate the causes of poor performance rather than spend time interpreting the data
themselves. This new brand of advising reduces costs, improves satisfaction and enables
advisors to take on higher-value activities.
Besides functions relating to students, AI could be used to improve efficiency in other AI
areas of college campuses. However, the expansion of AI to college administrative
departments has yet to be fully explored. One can envision 24-h service chatbots that have
the capabilities to run offices from the health and counseling center to the bursar’s office.
Moving toward an automated, self-managing and self-improving system across college
departments can turn big data into valuable, actionable insights.
277
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Corresponding author
Shuguang Liu can be contacted at: liush@newpaltz.edu
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