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Artificial Intelligence and the Transformation of Higher Education Institutions: A Systems Approach

Author

Listed:
  • Evangelos Katsamakas

    (Gabelli School of Business, Fordham University, New York, NY 10023, USA)

  • Oleg V. Pavlov

    (Department of Social Science and Policy Studies, Worcester Polytechnic Institute, Worcester, MA 01609, USA)

  • Ryan Saklad

    (Department of Social Science and Policy Studies, Worcester Polytechnic Institute, Worcester, MA 01609, USA)

Abstract

Artificial intelligence (AI) advances and the rapid adoption of generative AI tools, like ChatGPT, present new opportunities and challenges for higher education. While substantial literature discusses AI in higher education, there is a lack of a systems approach that captures a holistic view of the structure and dynamics of the AI transformation of higher education institutions (HEIs). To fill this gap, this article develops a causal loop diagram (CLD) to map the causal feedback mechanisms of AI transformation in a typical HEI. We identify important variables and their relationships and map multiple reinforcing and balancing feedback loops accounting for the forces that drive the AI transformation and its impact on value creation in a typical HEI. The model shows how, motivated by AI technology advances, the HEI can invest in AI to improve student learning, research, and administration while dealing with academic integrity problems and adapting to job market changes by emphasizing AI-complementary student skills. We explore model insights, scenarios, and policy interventions and recommend that HEI leaders become systems thinkers to manage the complexity of the AI transformation and benefit from the AI feedback loops while avoiding policy traps that may lead to decline. We also discuss the notion of HEIs influencing the direction of AI and directions for future research on AI transformation and the sustainability of HEIs.

Suggested Citation

  • Evangelos Katsamakas & Oleg V. Pavlov & Ryan Saklad, 2024. "Artificial Intelligence and the Transformation of Higher Education Institutions: A Systems Approach," Sustainability, MDPI, vol. 16(14), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:6118-:d:1437319
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    References listed on IDEAS

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    2. Sarah BENSAOULA & Mohammed Soufyane BEZZAR, 2025. "Artificial Intelligence And The Transformation Of Higher Education In Algeria," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(5), pages 244-256, December.
    3. Mohd Khuzairy Mohd Yusof & Noraini Harun & Khairil Fazly Bachok, 2026. "Artificial Intelligence in Malaysian Higher Education: A Critical Review of Lecturers’ Challenges, Readiness and Pedagogical Transformation in Teaching and Learning," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(5), pages 2372-2380, May.

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