Some are enthusiasts. Some are skeptics. And some are both. But everyone in the higher education world — students, staff, faculty and administrators — seems to agree that artificial intelligence is having and will continue to have a transformative impact on teaching, learning, research and work. As this new technology enters classrooms, boardrooms and systems, California’s public colleges and universities are tasked with finding the right balance: how to adapt to AI fast enough to not get left behind but slow enough to establish the appropriate guardrails.
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While the California State University system declared itself “AI-empowered” a year and a half ago, the University of California began working on its systemwide strategy recently. The California Community Colleges system, meanwhile, is hoping to secure the funding it believes it needs for AI adoption in the next state budget cycle.
California State University Systemwide strategy: In February 2025, the CSU announced a public-private initiative with tech companies like Google, Microsoft and NVIDIA to become what it called the nation’s first and largest “AI-empowered” university system. This included contracting with OpenAI to provide ChatGPT Edu to all its faculty, staff and students and setting up an advisory board to advocate for AI skills needed in the state’s workforce. The CSU’s strategy, officials said, was to enhance teaching and learning with the use of AI, offer AI trainings and connect students with “AI-enabled organizations” for work opportunities. It has also announced several academic programs including a certificate program in AI at Cal Poly and an AI and human responsibility major at San Diego State. Money spent: The CSU spent $17 million on an 18-month contract with OpenAI in January 2025. The university renewed that contract in May for three years at an additional cost of $39 million. Principles and guidelines: The CSU’s AI investment is guided by its mission to “expand access, promote responsible use for student success and prepare graduates to contribute to California’s economy and communities.” It is focused on preparing students for the workforce to ensure a “return on investment” for students and taxpayers.
Response: Both the California Faculty Association and the Cal State Student Association have asked for seats at the decision-making table as the CSU implements its AI Initiative — something that so far they say they have not been granted. Faculty are worried about their jobs, the financial costs to the university and intellectual property rights. Their union even sponsored a new law that prevents courses from being taught by AI instructors. Students have concerns about the environmental impact, data privacy and psychological impact of AI use. University of California
Systemwide strategy: So far, the UC has only facilitated its individual campuses and laboratories to enter into their own technology agreements with AI companies but not provided systemwide access. Now, it is considering multiple pathways, including a systemwide contract with a frontier AI company like Anthropic or OpenAI, a partnership with an established provider to create an AI public cloud, and a UC-owned and governed AI Cloud of its own. In addition, the university plans to create a learning platform to teach its students, staff and faculty to use the tools it will provide. The UC already offers a master’s degree in artificial intelligence and machine learning at Berkeley and an AI major at the San Diego campus.
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