Student Protections Lag Behind AI Adoption in Higher Education

Colleges and universities are rapidly integrating artificial intelligence into admissions, student services, and classroom instruction—but student protections have not kept pace with the technology's spread, according to a new analysis from Student Defense's SHAPE initiative.

The report, titled "Students at Stake: Risks of AI Deployment in Higher Education," identifies significant gaps in how institutions govern AI use, particularly in high-stakes areas like admissions decisions, financial aid distribution, and academic advising. Higher education leaders and researchers interviewed for the study expressed concern that schools are implementing AI tools without adequate safeguards against bias, privacy violations, and misleading information.

Why it matters

As institutions face enrollment pressures and operational costs, AI offers tempting efficiencies—but the technology's deployment in education carries unique risks. Unlike commercial applications, AI in higher education directly affects students' academic trajectories, financial futures, and access to opportunity. Without proper governance, these tools could perpetuate discrimination, erode educational quality, or manipulate student choices in ways that undermine the core mission of colleges.

Risks across the student lifecycle

The report highlights vulnerabilities at multiple touchpoints. In admissions and recruitment, AI systems may determine which prospective students receive outreach, what messages they see, and how financial aid is allocated—raising questions about discriminatory targeting and whether students understand the true cost of attendance.

Student advising and counseling present especially acute risks, according to the authors. These services often involve vulnerable moments when students seek guidance on academic or personal matters. AI systems in these contexts could provide incorrect advice with serious academic or financial consequences, yet students may not realize they're interacting with automated tools rather than human counselors.

In the classroom, AI deployment affects teaching quality, academic freedom, and student privacy. The report notes that even when AI systems appear to function correctly, they can produce errors—such as hallucinations—that a human would be unlikely to make. The speed and scale at which AI operates can amplify these mistakes in ways that are difficult to detect or reverse.

A framework for responsible adoption

Dan Zibel, co-founder and chief counsel of Student Defense, emphasized that leaders "cannot afford to adopt AI first and ask questions later." The report recommends institutions ask critical questions before implementing AI products: What specific problem does this solve? Do we have governance structures to ensure accountability? Are we being transparent with students? Does this create genuine value?

U.S. Congresswoman Suzanne Bonamici of Oregon responded to the report by calling for clear guardrails and resources to ensure AI expands opportunities rather than widening existing gaps in higher education.

The findings were first reported by Student Defense through its SHAPE—Safeguarding Higher-Ed Through AI Practices & Ethics—initiative.