The New AI Architecture of Higher Education 

Part 1 of our series Rewired: The New AI Architecture of Higher Education 

Part 2: How Higher Education Proves Value in the Skills Economy | Part 3: The Invisible Infrastructure That Determines Higher Education Success

The State of Higher Education 2025 report confirms what institutions have been tracking for years: the enrollment cliff is here. Peak high school enrollment arrived with the Class of 2025, and from now through 2041, the number of graduates will decline by 13%

Institutions knew this was coming. The story they aren’t ready to hear is what it requires: not better retention strategies or more aggressive recruiting, but fundamental reinvention of who they serve and how they serve them. Most institutions see the enrollment cliff as a crisis to be managed. I see it as the catalyst for higher education’s most exciting transformation in decades. 

The report captures a sector at an inflection point. Demographic shifts, AI advancement, and evolving student expectations are converging to create the conditions for fundamental reinvention. The barrier isn’t awareness or willingness, it’s execution. Institutions move slowly. Their systems are disconnected. Their infrastructure is rigid, designed for a traditional student population that no longer represents their future. 

The transformation requires work most institutions have barely started: reimagining who their students are, modernizing how systems serve them, and redefining what counts as proof of learning. 

The Student You’re Not Designing For 

I’ve sat in countless conversations with enrollment and student success teams. The pattern is always the same: everyone is focused on meeting this term’s targets, fixing immediate friction points, optimizing for the students already enrolled. There’s barely time to think about next month, let alone reimagine who you could serve five years from now. 

When leaders do push for serving non-traditional populations, such as adult learners, part-time students, and those with significant transfer credits, the instinct is often to squeeze these students into existing systems. Use the same registration workflows. Same advising model. Same assumptions about what ‘student success’ means. The result? You’ve diversified your enrollment numbers but not your infrastructure. 

This is the trap that keeps institutions focused on a shrinking market. As the traditional undergraduate population declines, a massive population of learners remains underserved: 

These learners represent the future majority of higher education, and they bring fundamentally different expectations. They need to learn while working full-time, while managing families, while living far from campus. They require flexibility as a condition of participation. And they expect university systems to work like every other digital experience in their lives: responsive, intelligent, and adaptive. 

Online-only enrollment has already surpassed 5 million students, and online master’s degrees now exceed in-person programs. The pandemic validated what these learners already knew: flexible learning is the only viable path for students juggling multiple commitments. What institutions treated as emergency response in 2020 has become permanent expectation in 2025. 

Being “student-centric” requires building systems with institutional memory, platforms that recognize a returning student, pre-populate forms with known information, and give advisors visibility into a student’s full academic journey. The technology to do this exists in every other sector. Higher education’s challenge is the complexity of dismantling deeply embedded silos while keeping operations running. 

The institutions that will thrive aren’t the ones fighting to preserve systems designed for traditional learners. They’re the ones willing to do the hard work of building platforms that serve a 19-year-old college freshman and a 45-year-old professional returning for a certification with equal intelligence, systems that recognize both learners, understand their different needs, and adapt accordingly. 

The Platform Play Higher Ed Hasn’t Made 

Online education has proven its viability. The next frontier is integration. Online and on-campus work best as different modes within a unified learning platform that follows students wherever they are in life. 

Right now, most universities treat online programs as separate business units with distinct registration systems, student services, and cultures. I’ve seen this friction play out in painful ways. A junior takes a summer internship out of state and wants to stay on track by taking one online course. Suddenly they’re navigating a completely different registration portal, calling a separate help desk, and dealing with advisors who can’t see their on-campus transcript.  

Or consider the undergraduate alum applying to an online master’s program at the same institution. They’re re-entering all the information the university already has, speaking with advisors who have no visibility into their four years of history. Same institution, but the student experiences it as if starting from zero. 

The friction is real, and it’s expensive. Every moment of confusion, every duplicated form, every advisor who doesn’t have complete context is a moment where the student considers whether continuing is worth the hassle. 

The opportunity sits in building modular, always-on learning environments where micro-credentials, degrees, and continuous upskilling integrate seamlessly. Picture this: A student completes a graduate certificate in data analytics. Three years later, they return for an MBA. The certificate credits automatically apply, their prior work is visible to new faculty, and the advising team can build on previous conversations rather than starting fresh. The student doesn’t have to re-explain themselves. They’re simply continuing a relationship the institution remembers. 

This isn’t hypothetical. Some institutions are building this now, and it’s becoming their competitive advantage. 

This vision requires treating education as a lifelong relationship rather than a four-year transaction. It means building systems that remember students, adapt to their changing needs, and make re-entry feel seamless rather than starting from scratch. The institutions that crack this will turn alumni into lifelong learners and turn education into something that compounds in value over time. 

This fundamentally shifts how institutions think about their role. Instead of a four-year engagement, you’re building relationships that span careers. Alumni who return for stackable credentials every few years represent the best kind of growth: learners you’ve already served well, who understand how your programs work, and who are advocating for your institution with their employers. This is how institutions build enrollment resilience in a shifting demographic landscape. 

What This Looks Like in Practice 

Transformation at this scale relies on strategic planning and attention to detail. It happens when your data architecture can track a learner across programs, modalities, and decades. When your student information system doesn’t silo traditional and non-traditional students into separate workflows and data structures. When your advising model scales to support someone taking one course just as effectively as someone enrolled full-time. 

The institutions getting this right are treating it as a technology transformation, not just a strategy refresh. They’re building unified data layers, modernizing APIs, and creating seamless user experiences. They’re measuring success by how little friction a learner experiences, not just by enrollment and retention numbers. 

Building the Foundation for What’s Next 

The universities that thrive over the next decade will be the ones that expand their definition of students to include learners at every career stage. They’ll create unified platforms where online and on-campus blend seamlessly, building experiences that serve diverse populations with equal care. 

Transformation happens in the essential work of modernizing systems, integrating data, and building platforms for lifelong learning. It happens when institutions shift their focus from what they’ve always done to designing for who they could serve. 

The institutions leading this work will be the ones that respond to the enrollment cliff by expanding who they serve. The ones that understand serving lifelong learners requires purpose-built infrastructure. The ones ready to measure success by skills activated rather than degrees awarded. 

The opportunity is clear: institutions that expand their definition of ‘student’ and build unified platforms for lifelong learning will own the next decade. But expanding who you serve only matters if learners believe your programs are worth their investment. In the next article, we’ll explore how institutions prove value in a skills economy—how they make learning outcomes transparent, credentials employer-legible, and career pathways visible from day one. 

Read part 2 of our Rewired series, How Higher Education Proves Value in the Skills Economy.

The pace of AI change can feel relentless with tools, processes, and practices evolving almost weekly. We help organizations navigate this landscape with clarity, balancing experimentation with governance, and turning AI’s potential into practical, measurable outcomes. If you’re looking to explore how AI can work inside your organization—not just in theory, but in practice. We’d love to be a partner in that journey. Request an AI briefing.  


Key Takeaways 


FAQs 

How can universities grow enrollment during the demographic cliff? 

Growth comes from expanding who you define as a student. First-time adult learners, students with transfer credits, professionals seeking micro-credentials, and alumni returning for reskilling represent massive underserved populations. Institutions that build systems serving these learners as well as traditional undergraduates will find new revenue streams throughout the demographic transition. 

How do institutions serve traditional students and lifelong learners simultaneously? 

By building unified platforms where different learner types access personalized experiences through the same underlying systems. An 18-year-old residential student and a 40-year-old professional seeking a certificate have different needs, but both benefit from intelligent advising, clear pathways, and responsive operations. The technology should adapt to the learner, not force the learner to adapt to rigid categories. 

What does a unified learning platform actually include? 

A unified platform integrates registration, advising, credential tracking, and student services across all learning modes. It remembers student history regardless of how long they’ve been away, allows seamless transitions between degree programs and micro-credentials, and personalizes communication and support based on individual circumstances. The goal is making re-entry as natural as initial enrollment. 

Why is lifelong learning more valuable than traditional four-year models? 

Lifelong learning creates recurring revenue streams and deeper alumni relationships. Students who return multiple times throughout their careers generate sustained tuition revenue while building stronger institutional loyalty. Education becomes a compounding relationship rather than a single transaction, increasing lifetime value per student.