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Dec 30 2025
Artificial Intelligence

How AI Is Reshaping Cloud Strategy and Governance in Higher Education

Artificial intelligence workloads are no longer limited to research computing for colleges and universities.

As artificial intelligence becomes more accessible across higher education, institutions are rethinking long-standing assumptions about cloud adoption, infrastructure strategy and governance. 

AI workloads are no longer limited to research computing. Increasingly, colleges and universities are exploring AI to support student recruitment, retention, advising, safety and administrative efficiency. That expansion is forcing IT leaders to reconsider where workloads should run and how those decisions align with data privacy, security and institutional goals.

Rather than accelerating cloud adoption by default, many institutions are now taking a more deliberate approach — balancing cloud, on-premises and hybrid models as part of a broader AI readiness strategy.

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AI Is Expanding Beyond the Research Environment

Historically, AI and high-performance computing in higher education were closely tied to research use cases. While research remains important, today’s AI conversations are increasingly centered on operational and student-facing outcomes.

Institutions are exploring AI to support areas such as enrollment management, student success initiatives, campus safety and facilities planning. On the administrative side, AI is being evaluated for automating repetitive workflows, improving governance processes and helping institutions better understand how physical spaces are used.

As AI moves into these areas, it intersects with more sensitive institutional data and a wider range of stakeholders, increasing the need for thoughtful infrastructure and governance decisions.

EXPLORE: Higher ed leaders are using AI to boost critical thinking in academia.

Cloud Accessibility Meets Data Sovereignty Concerns

Cloud platforms continue to offer an attractive entry point for AI, particularly for institutions that are early in their adoption journeys. Cloud-based AI services allow campuses to experiment quickly without making large capital investments, and they provide flexibility as workloads evolve.

At the same time, higher education leaders are increasingly focused on maintaining control over student, faculty and institutional data. Privacy, compliance and security requirements often push institutions to keep certain workloads within their own security perimeters.

This tension has led many institutions to reconsider “cloud first” strategies. Instead, IT teams are evaluating which AI workloads are best suited for public cloud environments and which may be better served by on-premises or hybrid architectures. In some cases, institutions are even repatriating workloads from the cloud back to their data centers to better manage cost, performance or data sovereignty.

DISCOVER: More examples of higher ed institutions that are deploying AI across campus

Governance Becomes the Foundation for AI Readiness

As AI adoption grows, governance has emerged as a critical starting point.

Effective AI governance helps institutions define how technologies are selected, deployed and used across campus. It typically includes policies around data access, acceptable use, compliance requirements and risk management, as well as considerations for space planning and infrastructure growth.

Many institutions are addressing this need by establishing cross-functional centers of excellence for AI. These groups often include representatives from IT, academic leadership, operations, facilities, security and compliance. By bringing multiple perspectives into the decision-making process, institutions can better align AI initiatives with institutional priorities and risk tolerance.

Governance frameworks also help campuses move from ad hoc experimentation to more consistent, scalable approaches to AI adoption.

Prioritizing Use Cases Based on Impact and Complexity

One of the most common challenges institutions face is determining where to start.

Rather than pursuing every possible AI opportunity, many campuses are using feasibility and complexity frameworks to prioritize projects. These approaches help leaders identify use cases that offer meaningful impact without introducing excessive technical or organizational risk.

Workshops and assessments can help institutions evaluate AI opportunities based on factors such as expected outcomes, data sensitivity, integration requirements and readiness for change. This structured approach allows campuses to focus on projects that are achievable in the near term while laying the groundwork for more advanced initiatives.

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A Three-Phase Approach to AI Security

Security considerations are also evolving as AI adoption increases.

Many institutions are framing AI security in three phases. This:

  • Focuses on protecting models, data and infrastructure
  • Uses AI technologies to enhance cybersecurity capabilities
  • Addresses emerging threats such as AI-generated attacks or misuse

This framework helps IT leaders integrate AI into existing security strategies while anticipating new risks introduced by advanced technologies.

Practical Steps for Higher Education Leaders

For institutions beginning or expanding their AI efforts, a practical starting point may include:

  • Assessing current AI maturity and existing infrastructure
  • Establishing governance structures or centers of excellence
  • Identifying high-impact, feasible AI use cases
  • Aligning cloud and on-premises strategies with data and security requirements
  • Leveraging existing investments and expertise to guide decision-making

Importantly, AI readiness does not require large, immediate investments in specialized infrastructure. Many institutions are finding success by starting with targeted initiatives, learning from early deployments and scaling over time.

As AI continues to influence higher education, institutions that take a measured, governance-driven approach will be better positioned to realize value while managing complexity.

This article is part of EdTech: Focus on Higher Education’s UniversITy blog series featuring analysis and recommendations from CDW experts.

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