Higher Education at a Crossroads: Implications for CIOs

Higher education CIOs are navigating a new landscape. Any future-facing institutional mission will be a balancing act. The need to keep pace with technology advancements may be hampered by market forces such as higher operating costs, increased competition, and dwindling student enrollment numbers. However, each institution has a unique commercial model, customer base, capabilities, and culture that must be reviewed against evolving institutional goals (see figure 1).

Education CIOs must rethink strategies, teams, and practices. They may need to rapidly reallocate investments to face the challenges caused by increased AI expectations, talent shortages, and the ongoing impacts of pandemic-related student learning loss. They may seek to balance the optimization of existing technologies with transformation thanks to new technologies, but in doing so, they will also have to ensure a supportive institutional and leadership culture that drives change. Three areas will be critical to success: cloud migration, AI adoption, and the role of the CIO.

Move to the Cloud

Gartner predicts that by 2028, 75 percent of IT installations in higher education will be managed through cloud-based services and solutions. Correspondingly, on-premises investments continue to decrease, with 38 percent of higher education CIOs reporting in the 2025 Gartner CIO and Technology Executive Survey that they plan to decrease funding in legacy infrastructure and data center technologies.^Footnote1

Digital transformation is viewed as a component of future success, and education CIOs must focus on upgrading legacy software and infrastructure to better meet stakeholder needs. Take these actions:

• Deploy enterprise capabilities that are standards-based and cloud-capable to support new digital initiatives that leverage innovative technologies.
• Reallocate IT budgets by reducing on-premises infrastructure investments to prioritize funding for digital learning, new technologies, and cybersecurity.
• Develop vendor management strategies by establishing service-level agreements (SLAs) and compliance protocols focused on data privacy, security, disaster recovery, and business continuity.

Given the broad range of organizational budgets and financial capabilities across the higher education sector, some institutions may be better positioned to accelerate forward. For others, cost optimization will be critical and require a balanced adoption of technology-enabled education and research delivery.

Unlock the Power of AI

Gartner predicts that by 2028, over 70 percent of teaching, research, and student-submitted content at all levels of education will be developed with support from generative AI. At the same time, less than 15 percent of school systems worldwide will have achieved the data governance, management, and readiness required to unlock AI-enabled innovation.^Footnote2

It's up to education CIOs to facilitate the benefits of AI while managing its risks and challenges.

• Foster a culture of AI readiness by evaluating data quality and aligning it to use cases.
• Align AI to address key educational challenges that have the greatest impact on students and educators.
• Gain expertise in data management and AI adoption by establishing corporate, government, vendor, and peer partnerships.
• Partner with HR and faculty and academic leaders to manage risks, design prompts, and create widespread AI awareness, literacy, and expectation management.
• Evaluate and evolve AI governance to ensure shared institutional goals and appropriately managed risk, security, and spend.

Rethink Your Role

Gartner predicts that by 2028, 65 percent of higher education CIOs will identify improving operating margins as the critical digital technology investment outcome, up from 32 percent in 2024. Enhanced digital delivery capabilities have opened up a global competitive environment, pressuring higher education institutions to improve the student experience while focusing on cost optimization.^Footnote3

As traditional IT roles shift from managing physical infrastructure to overseeing cloud services, the role of the CIO must also evolve to develop new skill sets for staff focused on supporting business technologists, managing vendor relationships, and proving the value of IT services and support to stakeholders.

CIOs can start moving in the right direction by doing these things:

• Reviewing the scheduled benefits of existing digital technology investments against the potential of realizing financial benefits.
• Fostering a culture of collaboration and innovation by implementing training programs for business technologists and facilitating cross-functional governance frameworks.
• Demonstrating IT value by aligning IT metrics with business outcomes so contributions are measured through their impact on institutional goals.

Notes

1. Mandi Bishop, "2025 CIO Agenda: Benchmark Top Priorities and Technology Plans Across Industries," Gartner, October 21, 2024. Jump back to footnote 1 in the text.↩
2. Tony Sheehan et al., "Predicts 2025: Education Dilemmas, Data Foundations, and New Directions," Gartner, December 26, 2024. Jump back to footnote 2 in the text.↩
3. Ibid. Jump back to footnote 3 in the text.↩

Tony Sheehan is VP Analyst, KI Leader at Gartner.