Exploring the Impact of AI in Higher Education: Efficacy, Ethics, Risks, and Future Trends

Generative Artificial Intelligence is a transformative tool reshaping today’s society and driving unprecedented changes. As Stanford University puts it, there are “...emerging areas of exploration for AI and learning, including collaborative classroom tools,” and “...teachers want to understand how to use AI to teach, how to teach about AI, and how AI actually works” (Sacks, 2025). This research examines case studies, interviews, and existing scholarly literature to identify AI's efficacy, ethicality, risks, and benefits in higher education. According to the Educause Review, “these efficiencies will lead to increased efficacy – to more effective teaching, learning, institutional decisions, and guidance” (Zeide, 2019). Through Functionalist Theory, we explore the potential risks and benefits of using AI in higher education settings. This research will investigate potential future trends, including the evolution of AI technology, its integration into various sectors, and the societal consequences of its widespread adoption. As Dr. Andrew Martin, a professor at the University of New South Wales, states, “The more you rely on generative AI to help you with your schoolwork, the less you might be inclined to meet up with friends in person or online after school to brainstorm around an essay” (Abrams, 2025). With this, our research should contribute to the ongoing debate about the responsible development and deployment of AI in our increasingly digital world.