HigherEd AI Daily: Feb 13 – Faculty Abandon AI Bans, Students Use ChatGPT for College Search, Employers Say Grads Aren’t AI-Ready

Hello,
Faculty Are Abandoning AI Bans: The Policy Shift Has Begun
A new study shows that highly restrictive AI policies introduced after ChatGPT's launch are being eased in favor of more nuanced responses. Faculty are moving away from outright bans and instead integrating AI into teaching and assessment. The shift reflects a growing recognition that prohibition is not sustainable.
This matters because policy follows practice. When faculty abandon bans, they signal acceptance. Your institution's official AI policy may still prohibit AI use—but your faculty are already integrating it into courses. This creates governance chaos.
What this means: Outdated policies that prohibit AI are now in conflict with faculty practice. Your governance framework is misaligned with reality on the ground.
Action: Audit your current AI policy. Is it restrictive? If so, it's likely already being circumvented by faculty. Bring the policy into alignment with actual practice. Better to have a permissive, well-documented policy than a restrictive policy that no one follows.
Almost Half of Students Use ChatGPT for College Search
A new EAB study shows that nearly 50% of high school students are using AI tools like ChatGPT in their college search process. This is not a niche behavior. It's mainstream. And colleges are now racing to optimize their \"AI visibility\"—ensuring their programs show up when students ask ChatGPT questions.
The dynamic is clear: students are outsourcing college search to AI. They ask ChatGPT, \"What colleges should I consider?\" ChatGPT recommends institutions that are \"visible\" in its training data. Colleges that aren't AI-visible won't get recommended.
What this means for your institution: Your marketing strategy must now include \"generative engine optimization.\" Your program descriptions must appear in AI training data. If they don't, students won't see you.
Critical action: Talk to your marketing and enrollment teams. Are you optimizing for AI visibility? Are your program pages structured in ways that AI models can easily understand and recommend? If not, you're losing students to colleges that are.
Employers Say Universities Aren't Producing AI-Ready Graduates
According to a CarringtonCrisp report published today, 77% of employers expect new hires to have some AI experience, yet 58% believe universities are not preparing students adequately. The skills gap is widening. Employers want AI literacy. Universities aren't delivering it.
This is not a marginally important issue. This is a fundamental misalignment between what employers need and what universities teach. Your graduates are entering a workforce that expects AI fluency. If your curriculum doesn't teach it, your graduates will be behind.
Immediate actions:
  • Survey your recent graduates: Are employers asking about AI skills on day one?
  • Talk to your employers: What does \"AI-ready\" mean to them? What specific skills matter?
  • Audit your curriculum: Where is AI integrated? Is it in every program or siloed in computer science?
  • Create accountability: Make AI literacy a cross-disciplinary learning outcome, not an elective.
Friday the 13th: Global Selloff as AI Fear Grips Markets
The markets experienced another AI-driven sell-off today as investors split between perceived AI winners and losers. The \"AI fear trade\" is accelerating: investors are dumping stocks in industries threatened by AI disruption (real estate, trucking, logistics, property services) while chasing AI infrastructure plays.
What's notable is the speed of the rotation. Last week investors worried about AI disruption. This week they're actively selling stocks in disrupted sectors. The anxiety is becoming action.
What this means for higher education: Your institution may have exposure to this market volatility through endowment investments, research funding, or donor portfolios. If your major donors' wealth is tied to stocks being disrupted by AI, they may become less generous.
AI Is Disrupting the Romance Novel Industry (And Other Creative Markets)
The New York Times featured a story this week about how AI is rapidly disrupting the romance novel market. Some authors claim they can generate a complete book in 45 minutes using Claude or ChatGPT. The romance industry, always at the forefront of technological adoption, is the first to face full-scale AI disruption of creative work.
This is significant because it signals what's coming for other creative fields. If romance novels can be generated in minutes, what happens to screenwriting? Technical writing? Academic publishing? The creative economy is about to face structural disruption.
Reflection for your institution: Do you have students studying creative writing, journalism, technical communication, or other writing-intensive fields? Those programs may need to pivot. The career paths your students are training for may not exist in five years. Your curriculum may need to emphasize what AI cannot do: original thinking, ethical judgment, human connection.
Try something new today
Employer Interview Exercise: Invite a hiring manager from a major employer in your region to a 30-minute conversation with 3-4 faculty members who teach in fields that feed that employer. Ask: What AI skills do you expect from entry-level hires? What is \"AI-ready\" in your industry? What should universities be teaching? Document the conversation. Use it to inform curriculum planning.
A Final Reflection for Today
February 13 shows us the paradox of institutional lag: faculty are abandoning AI bans while your policies still prohibit it; students are using AI for college search while your marketing ignores AI visibility; employers expect AI-ready graduates while your curriculum hasn't changed; and markets are repricing industries based on AI disruption fears while your institution's strategy remains static.
The common pattern is clear: the world is moving faster than your institution can adapt. Your policies lag practice. Your marketing lags student behavior. Your curriculum lags employer expectations. Your strategy lags market reality.
The question: How much longer can your institution afford this lag? At what point does misalignment become crisis? This week's evidence suggests you're approaching that point. The time to move is now, not next year.
Lead deliberately. Move fast.
HigherEd AI Daily

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