The Economics of AI-Driven Online Learning

The implementation of artificial intelligence (AI) into higher education has become one of the most frequently discussed topics in journals, conferences, blogs, and popular media. AI promises to reshape the educational landscape by improving efficiencies, taking on mundane administrative tasks, personalizing instruction, increasing faculty productivity, enhancing student services, amplifying marketing efforts, and positively affecting an institution’s reputation. This chapter explores the economics of AI-driven online learning, focusing on how AI technologies can provide affordances and how it can impact cost structures, pricing models, and return on investment (ROI). It examines the costs associated with integrating AI of AI-enhanced education, highlighting the benefits and challenges of each. Finally, ways to demonstrate ROI for AI implementation are explored, with recommendations for maximizing the potential for achieving positive ROI.