Higher education today stands at a crossroads unlike any in living memory, buffeted by disruptions that arrive not gradually, as in past technological shifts, but with breathtaking speed and scope.

The arrival of generative artificial intelligence, tools that can draft essays and solve complex problems or even mimic human creativity, has upended long-held assumptions about teaching, learning, and assessment almost overnight. What began as a frantic scramble to detect cheating has evolved into a broader reckoning: universities must now decide whether to resist these tools, ban them outright, or embrace them as partners in education.

Yet the evidence points clearly to the latter path, for generative AI is not a passing fad but a fundamental reconfiguration of knowledge work itself.

Where does the sector stand in late 2025?

Initial panic over academic integrity has given way to cautious experimentation. Many institutions have moved beyond outright prohibition, issuing guidelines that permit supervised use while wrestling with ethical dilemmas and uneven faculty preparedness.

Surveys reveal a patchwork reality: some campuses integrate AI into curricula through pilot programmes and updated assessments, while others cling to traditional methods, fearing loss of rigour.

Students, meanwhile, adopt these tools enthusiastically, and often covertly, viewing them as essential aids in an overwhelming academic landscape. Yet a profound gap persists between high-level principles (ethics, fairness, humanity) proclaimed by administrators and the practical scaffolding that faculty and students desperately need to use AI effectively and responsibly.

The disruptions extend far beyond campus walls. Public confidence in the value of a college degree is eroding, accelerated by soaring costs, demographic declines, and now the perception that AI can replicate or even surpass much of what universities have traditionally provided. Employers, once reliable champions of higher education, increasingly question whether graduates arrive equipped for a world where generative AI is reshaping every profession.

Businesses are racing to deploy these technologies at an accelerating pace, yet report acute shortages of workers who can prompt effectively, interpret outputs critically, or integrate AI into complex workflows. The result is a widening mismatch: organisations hungry for AI-literate talent, but graduating cohorts whose education often treats these tools as threats rather than allies.

What are we missing?

Above all, a holistic approach that treats generative AI not as a bolt-on gadget but as a core element of human capability development. Early childhood teaches foundational skills; primary and secondary schools build upon them; higher education has long served as the bridge to productive adulthood.

If universities fail to scaffold AI adoption through faculty training, redesigned curricula, ethical frameworks, and authentic assessments that reward human judgment alongside machine augmentation, they risk producing graduates who are functionally illiterate in the very tools defining tomorrow's economy.

We miss systematic investment in instructor development, equitable access to licensed tools, and partnerships with industry to align learning outcomes with emerging needs. Most critically, we miss a shared vision that views AI as an amplifier of human potential rather than a replacement for it.

The path forward demands urgency and coherence. Universities must transition deliberately to supported, scaffolded integration: training programmes that demystify AI for educators, curricula that teach prompt engineering alongside critical thinking, assessments that value synthesis over rote production. Only then can higher education fulfil its enduring mission, which is to prepare thoughtful, adaptable citizens for a world in flux.

Far from rendering universities obsolete, generative AI reaffirms their irreplaceable role: not as mere transmitters of information, which machines now handle adeptly, but as crucibles for wisdom, ethics, and human flourishing.

In investing wisely now, we ensure that the coming disruptions strengthen rather than shatter the academy's vital contributions to society.

-- BERNAMA

Dr Diana Abdul Wahab (diana.abdwahab@um.edu.my) is a senior lecturer from the Department of Decision Science, Faculty of Business and Economics, Universiti Malaya.