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A growing number of Indian higher education institutions (HEIs) are embracing artificial intelligence in classrooms, both for teaching and learning. According to a new report by Ernst & Young-Parthenon in collaboration with FICCI, over 60 percent of HEIs now allow students to use AI tools, while more than half are using generative AI to create learning materials.

The report, titled “Future-Ready Campuses: Unlocking the Power of AI in Higher Education,” is based on a survey of 30 leading institutions across India. It examines how universities and colleges are integrating AI across academic, administrative, and governance functions, from curriculum design to faculty training and campus operations.

Findings reveal that 56% of HEIs have already rolled out official AI-related policies, while 40 percent are using AI-powered chatbots and tutoring systems to support learners. Nearly 39% have launched adaptive learning platforms, and 38% are applying AI-based automated grading in assessments.

“AI is no longer a



future experiment; it’s a present reality shaping curriculum design, evaluation systems, and classroom engagement,” the report noted.

Across the education spectrum, institutions are deploying AI for personalised tutoring, plagiarism checks, grading automation, curriculum planning, and career guidance. Generative AI tools for developing study materials and AI-driven tutoring assistants have emerged as the most common use cases.

However, the report cautions that with rising use of AI comes the need for robust data governance. Many AI tools process student submissions, engagement data, or even biometric details, which raises privacy and security risks.

“Improper management of such data could lead to breaches of privacy, regulatory penalties, and reputational damage,” the report warned. It stressed that institutions must establish centralised governance systems and clear contracts with technology providers to safeguard data, while ensuring that faculty policies align with institutional safeguards.

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