GHFC Research Brief: McKinsey's State of AI 2025 Report

​Artificial Intelligence (AI) is rapidly transforming industries worldwide, and higher education is no exception. The latest McKinsey Global Survey on AI, titled "The State of AI: How Organizations Are Rewiring to Capture Value," offers critical insights that higher education leaders can leverage to navigate this evolving landscape.​

AI Adoption and Organizational Change

The survey reveals that over 75% of organizations now incorporate AI into at least one business function, with generative AI (gen AI) usage on the rise. Notably, larger organizations are leading the charge, implementing structural and procedural changes to harness AI's potential. These changes include redesigning workflows and assigning senior leaders to oversee AI governance. For higher education institutions, this underscores the importance of integrating AI into administrative and academic processes to enhance efficiency and decision-making.​

Leadership and Governance

Effective AI implementation necessitates robust governance. The survey indicates that CEO oversight of AI governance correlates strongly with positive financial outcomes. In the context of higher education, this suggests that university presidents and chancellors should take active roles in AI initiatives, ensuring alignment with institutional goals and ethical standards. Establishing dedicated AI committees or task forces can facilitate this oversight.​

Risk Mitigation

As AI adoption grows, so do associated risks, including data privacy concerns and algorithmic biases. The survey highlights that organizations are proactively addressing these risks by implementing comprehensive risk management strategies. Higher education institutions must prioritize the development of policies that safeguard student and faculty data, ensure transparency in AI-driven decisions, and promote fairness in AI applications.​

Talent Development and Upskilling

AI integrations demands new skill sets. Organizations are not only hiring for AI-specific roles but also retraining existing employees to adapt to AI-integrated environments. Higher education institutions have a dual responsibility: to upskill their workforce, including faculty and administrative staff, and to equip students with AI competencies relevant to the modern workforce. This may involve revising curricula to include AI literacy and offering professional development programs focused on AI applications in education.​

Strategic Investment

The survey indicates a trend of increasing investments in AI, particularly among larger organizations. For higher education leaders, this underscores the necessity of allocating resources toward AI initiatives, whether through partnerships with tech companies, investing in AI research, or developing in-house AI capabilities. Such investments can drive innovation in teaching methodologies, research endeavors, and operational efficiencies.​

Reshaping Higher Ed Workflows with Gen AI

One of the strongest findings from McKinsey’s survey is that the redesign of workflows—not just AI implementation—has the biggest effect on generating measurable value. About 21% of organizations using gen AI report that they have fundamentally redesigned some workflows, not merely layered AI on top of existing systems.

What this means for higher education leaders: The true power of AI isn’t in automating small tasks—it’s in reimagining how work gets done. From admissions to advising, from financial aid to student engagement, colleges and universities must think about how to reengineer processes to be more efficient, student-centered, and data-informed. That could mean restructuring advising workflows to include predictive analytics, chatbots, and personalized success plans—or optimizing faculty workload allocation using AI-supported scheduling systems.

In closing

The insights from McKinsey's survey illuminate a path forward for higher education leaders aiming to harness AI's potential. By fostering strong leadership, redesigning workflows, mitigating risks, developing talent, and making strategic investments, institutions can position themselves at the forefront of educational innovation. Embracing AI is not merely a technological upgrade but a strategic imperative to enhance educational outcomes and institutional resilience in an increasingly digital world.

Read the full report here: https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai?cid=other-eml-shl-mip-mck&hlkid=d0ab11ff9af2437c93fa164ec815e349&hctky=15266629&hdpid=235f19d3-6fe4-482a-976a-12d7d6439f9f