Harnessing AI in higher education: Opportunities and the road ahead

AI is transforming higher education in India, driving a shift to responsible adoption.

In brief

• The FICCI-EY-P AI Adoption Survey 2025 shows that ~57% of Indian Higher Education Institutions (HEIs) already have an AI policy.
• The overarching challenge is not whether HEIs should adopt AI, but how to do so responsibly, inclusively and strategically, aligning with India’s National AI Mission and Sustainable Development Goals.
• Student use of AI is widespread: a survey conducted by the Digital Education Council in 2024 found that 86% of students use AI in their studies, with 54% using it weekly and 24% daily.

AI is no longer peripheral to education—it is embedded in student practice. A survey conducted by the Digital Education Council in 2024 found that 86% of students are already using AI tools for tasks such as resume building, summarizing readings and problem-solving—underscoring the urgency for HEIs to integrate these practices into institutional policies and pedagogy.

Findings from the FICCI–EY–P AI Adoption Survey 2025, based on responses from 30 Indian HEIs, indicate that 57% already have institutional AI policies, while another 40% are in the process of developing one. The most cited academic applications are generative AI for teaching materials (53%), tutoring and chatbots (40%), adaptive learning platforms (39%), and automated grading (38%).

AI is also reshaping internationalization by enabling curriculum localization, powering immersive virtual exchanges, and supporting international students through AI-driven admissions and career platforms. Tools such as virtual campus tours and AI-powered lifecycle support extend institutional reach and enhance India’s transnational education footprint.

Curriculum redesign

Curriculum redesign for the AI era must begin with AI literacy—an approach that equips students not only with technical familiarity but also with the ability to critically evaluate and apply AI across disciplines. The Digital Education Council survey revealed that nearly half of students feel unprepared for an AI-enabled workplace, pointing to a systemic skills gap.

HEIs are responding by embedding AI content into curricula through degrees, minors, interdisciplinary modules, blended learning in colleges, and stackable micro-credentials. In Science, Technology, Engineering, and Mathematics (STEM) fields, advanced content such as machine learning, natural language processing, and robotics is being integrated, while domain-specific AI programs are emerging in fields such as law, healthcare, and business.

Research and innovation

India ranks fourth globally in research output but lags on quality indicators such as citations and H-index. AI is becoming a core driver of research, serving both as a powerful enabler across disciplines and as a distinct subject of inquiry.

The FICCI–EY–Parthenon AI Adoption Survey 2025 reveals that half of the responding HEIs are already advancing AI-related research through dedicated centers. Their priorities span both applied domains—such as biology, education, and law—and foundational areas including natural language processing (NLP), computer vision, and machine learning. Leveraging AI in research is fueling innovations in healthcare, energy, agriculture, and disaster response, positioning AI as a critical enabler of progress towards the Sustainable Development Goals.

Industry partnerships are also shaping curriculum through co-created courses and AI clinics, which provide students with applied, practice-oriented learning experiences. Scaling such initiatives will require investments in labs, computing infrastructure, and flexible college curricula supported by lifelong learning pathways.

Ethics, governance, and capacity building

While AI offers significant advantages, its adoption brings with it important concerns around fairness, transparency and accountability. Risks include algorithmic bias in admissions, opacity in grading, and weak data protection systems. International frameworks such as the Beijing Consensus on AI in Education (2019) and UNESCO’s Recommendations on the Ethics of AI (2021), together with India’s Digital Personal Data Protection Act (2023), provide reference points for governance.

Building capacity is an equally urgent priority. A survey by the Digital Education Council in 2025 found that only 17% of faculty consider themselves “Advanced” or “Experts” in AI, and just 6% are satisfied with AI literacy resources provided by their institutions. The survey further shows that 43% of faculty cite lack of time as a barrier to upskilling.

A tiered training approach—combining micro-credentials, Massive Open Online Courses (MOOCs), workshops and extended seminars—can help institutions ensure faculty readiness. 

Conclusion

AI adoption in higher education is accelerating worldwide, and India stands at a pivotal juncture. The evidence demonstrates both widespread student adoption and growing institutional uptake, alongside opportunities across teaching, research, administration and curriculum. Yet risks relating to ethics and capacity demand strong governance.

The imperative for Indian HEIs is clear: Adopt responsible AI in universities in ways that are inclusive and strategically aligned with national priorities —building future-ready campuses that can compete globally.