Artificial intelligence is rapidly reshaping how people work, live, and learn, and Microsoft argues that higher education can’t afford to treat AI as just another trend. Instead, colleges and universities should take an active leadership role in helping society adapt responsibly and effectively. That’s the central idea behind “Degrees of Change: What AI Means for Education and the Next Generation,” a new book by Juan M. Lavista Ferres, who leads Microsoft’s AI Economy Institute and serves as director of the AI for Good Lab. In the article, he emphasizes that higher education faces a clear challenge: move fast enough to prepare students for an AI-driven world, while staying grounded in its long-standing mission of developing critical thinking, strong communication, and human-centered values.

The article highlights four major ways universities can lead in the age of AI.

First, AI literacy can no longer be optional. AI tools are increasingly part of daily life and work, from everyday tasks to complex professional responsibilities. That means students need more than surface-level familiarity; they need real competency that can translate into career value. The job market is already sending signals that AI skills matter, and early data referenced in the article suggests that AI proficiency may be linked to a 23% wage premium.

Second, universities must evolve quickly without losing their identity. AI can automate routine work and dramatically change how problems are solved, but education must keep human agency at the center. The article stresses that institutions should integrate generative AI thoughtfully into courses, degrees, and infrastructure, not just as a productivity shortcut, but as a tool that supports deeper learning. At the same time, schools need to scale AI education so it becomes accessible to all students, not just a select few. Third, AI education should work both ways. It’s not enough for students or educators to learn how to “use AI.” Developers and technologists also need to understand AI’s ethical and societal implications, while educators, policymakers, and the general public should learn more about how AI systems function and where risks can arise. This “dual literacy” is framed as essential to responsible adoption, better policy, and long-term innovation. Finally, higher education can’t do this alone. The article argues that real progress depends on collaboration between universities, industry, and policymakers. Institutions should help define standards for AI credentials that employers recognize, and they must support faculty and students with the structural and financial resources required to integrate AI learning into real academic programs. The goal is to combine academic agility with inclusivity, ensuring diverse learners can participate in the AI future. Overall, Microsoft’s message is clear: AI is changing education, but higher education can also shape what AI becomes — by leading with skills, ethics, and collaboration.