AI is changing higher education. Here’s how California schools are responding

Some are enthusiasts. Some are skeptics. And some are both. But everyone in the higher education world — students, staff, faculty and administrators — seems to agree that artificial intelligence is having and will continue to have a transformative impact on teaching, learning, research and work.

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As this new technology enters classrooms, boardrooms and systems, California’s public colleges and universities are tasked with finding the right balance: how to adapt to AI fast enough to not get left behind but slow enough to establish the appropriate guardrails.

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While the California State University system declared itself “AI-empowered” a year and a half ago, the University of California began working on its systemwide strategy recently. The California Community Colleges system, meanwhile, is hoping to secure the funding it believes it needs for AI adoption in the next state budget cycle.

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California State University

• Systemwide strategy: In February 2025, the CSU announced a public-private initiative with tech companies like Google, Microsoft and NVIDIA to become what it called the nation’s first and largest “AI-empowered” university system. This included contracting with OpenAI to provide ChatGPT Edu to all its faculty, staff and students and setting up an advisory board to advocate for AI skills needed in the state’s workforce. The CSU’s strategy, officials said, was to enhance teaching and learning with the use of AI, offer AI trainings and connect students with “AI-enabled organizations” for work opportunities. It has also announced several academic programs including a certificate program in AI at Cal Poly and an AI and human responsibility major at San Diego State.
• Money spent: The CSU spent $17 million on an 18-month contract with OpenAI in January 2025. The university renewed that contract in May for three years at an additional cost of $39 million.
• Principles and guidelines: The CSU’s AI investment is guided by its mission to “expand access, promote responsible use for student success and prepare graduates to contribute to California’s economy and communities.” It is focused on preparing students for the workforce to ensure a “return on investment” for students and taxpayers.
• Response: Both the California Faculty Association and the Cal State Student Association have asked for seats at the decision-making table as the CSU implements its AI Initiative — something that so far they say they have not been granted. Faculty are worried about their jobs, the financial costs to the university and intellectual property rights. Their union even sponsored a new law that prevents courses from being taught by AI instructors. Students have concerns about the environmental impact, data privacy and psychological impact of AI use.

University of California

• Systemwide strategy: So far, the UC has only facilitated its individual campuses and laboratories to enter into their own technology agreements with AI companies but not provided systemwide access. Now, it is considering multiple pathways, including a systemwide contract with a frontier AI company like Anthropic or OpenAI, a partnership with an established provider to create an AI public cloud, and a UC-owned and governed AI Cloud of its own. In addition, the university plans to create a learning platform to teach its students, staff and faculty to use the tools it will provide. The UC already offers a master’s degree in artificial intelligence and machine learning at Berkeley and an AI major at the San Diego campus.
• Money spent: Individual UC campuses have contracts with AI companies, including through a system-negotiated agreement with OpenAI in 2024. This agreement charges $10 to $12 per month per user for ChatGPT Edu. The UC has also invested heavily in AI research for several years. For its new systemwide AI strategy, officials are expected to bring funding proposals to the president next year.
• Principles and guidelines: In 2021, the UC established a set of guiding principles for the internal use of AI, including data privacy, accountability and transparency. Priding itself as the first university system in the country to do so, officials said their governance of AI was ahead of adoption, and they would not “trade safety for speed.” The UC’s strategy is steered by a commitment to “AI for humans and humanity,” President James Milliken said.
• Response: Candice Phan, president of the UC Student Association, urged university leaders to take concerns about data privacy seriously as they consider contracts with companies like OpenAI and Anthropic and to hear student perspectives on the topic. Miguel Craven, student regent on the UC board, said students are being given conflicting advice across their classes. While they are encouraged to use AI in some classes, they are barred from doing so in others, he said, and this has created some confusion.

California Community Colleges

• Systemwide strategy: The California Community Colleges’ major AI initiatives so far have included professional development opportunities for staff and faculty and a course assistant to help students understand class expectations and assignments. Some colleges — like Folsom Lake — offer associate degrees or certificates in artificial intelligence and machine learning. The system is also working towards providing access to Google AI tools across all colleges. Apart from that, individual colleges are left to rely on commercial platforms independently. Now, if granted state funds, the system plans to build technological infrastructure, train faculty and staff in the use of AI and provide grants for local innovations across all its districts.
• Money spent: In the 2027-28 state budget cycle, the system is requesting nearly $200 million to support AI adoption across its 116 colleges. The Chancellor’s Office has also been testing student-centered approaches to AI with philanthropic support from software company Salesforce, officials said.
• Principles and guidelines: The system’s approach to AI, officials say, is grounded in equity, security, accountability and student success. Its major principles include ensuring access to underserved colleges and communities, clear communication on how AI systems are used, and ongoing learning with the knowledge that AI risks and opportunities are evolving.
• Response: Some students have raised concerns about data privacy at California Community Colleges board meetings. Sarah Thompson, president of the Faculty Association of California Community Colleges, drew attention to the importance of recognizing AI’s ability to simultaneously facilitate education efficacy while impeding other forms of learning. Thompson also asked that faculty’s intellectual property be protected.