New data reveals artificial intelligence has significant untapped potential within higher education, particularly as institutions fail to adopt the technology
BOULDER, Colo., Jan. 30, 2024 /PRNewswire-PRWeb/ -- Ivy.ai, the leading provider of chatbots and omnichannel communications platforms, today released the findings of its report, Unveiling the AI Effect: How Higher Ed Admins Adapt and Gain. More than 600 administrators employed at a higher education institution were surveyed, with findings indicating AI-powered technology is a game changer for universities as they look to boost revenue growth and student retention.
The report found that higher education administrators expect investments in AI to pay off in dividends, as 78% of respondents who use AI believe it will lead to revenue growth for their institution. Moreover, 71% of admins believe using AI will lead to direct cost savings. Of those, over half (52%) believe it will lead to lower tuition costs. And the proof is in the pudding: a vast majority (82%) of respondents have seen a positive return on investment in the 12 months following adoption. Respondents working in admissions were 50% more likely than average to report a positive impact, with 62% seeing an increase in student enrollment and retention rates.
Yet, those impact numbers only scratch the surface of AI's capabilities within higher education, as the majority of administrators are not using the technology to its full potential. For example, only 32% of respondents who use chatbots leverage them to enhance student engagement and retention. Additionally, several key student services are not AI-enabled, with only 26% of users implementing AI-powered technology in admissions counseling and 18% in mental health services.
"While nearly every industry is integrating AI into their processes, higher education faces unique challenges not found in other sectors - from student privacy to algorithmic bias to federal policy adherence," said Mark McNasby, CEO and co-founder of Ivy.ai. "Addressing these challenges is crucial to ensuring students secure an enriching educational experience amidst the evolving landscape of AI. Ivy.ai reaffirms our commitment to advancing efficient processes for administrators in student support services, ensuring AI contributes to a safe and equitable education landscape that prioritizes student outcomes."
Additional key findings include:
Ethical concerns mitigate successful AI adoption in higher education
While only 34% of respondents encountered integration difficulties and 31% faced budget constraints during implementation, there are distinct challenges to AI adoption within educational institutions. Notably, ethical and reputational concerns are at the forefront of educators' minds, as nearly half of respondents have ethical worries related to fairness, bias, and transparency in AI. What's more, 43% feel uncertain about the rights of students and admins regarding AI-processed data.
AI makes every dollar (and second) count
Embracing AI in higher education isn't about job replacement; it's a transformative partnership. AI empowers administrators to focus on impactful tasks, meaning institutional revenue is not wasted on tasks that could easily be automated. For context, the introduction of AI in higher education institutions saves administrators an average of 10 hours per week on administrative processes. Considering the average salary of administrative employees is $80,932, institutions are allocating approximately $389 per week for each full-time administrative employee to low-value tasks when they don't implement AI.
Ivy.ai's Unveiling the AI Effect: How Higher Ed Admins Adapt and Gain report is available to view here.
Ivy.ai's Unveiling the AI Effect: How Higher Ed Admins Adapt and Gain is a nationwide study that was conducted from October 25 to December 5, 2023. Findings are based on a survey of more than 600 respondents aged over 18 who are currently employed as administrative professionals for an institute of higher education.
Ivy.ai is the leading provider of conversational, artificially intelligent chatbots for higher education, health care, and government. Founded by Mark McNasby and Michal Oglodek in 2016, Ivy.ai has a ninety-seven percent customer retention rate and has been selected as an Inc 5000 company for three consecutive years. With over 800 bots built, Ivy.ai bots handled more than 6.2 million unique conversations in 2023. For more information, visit Ivy.ai.