How AI and Automation Can Help Optimise Costs in Higher Education

Higher education institutions in the UK are facing unprecedented challenges. With Brexit making it more difficult to attract international students—who often contribute significantly to university revenues—the sector is feeling the strain. Adding to this pressure, the government has made it clear that it won’t be offering financial bailouts to universities, forcing institutions to take decisive action to manage their costs. As a result, cuts must be made, and universities are under increasing pressure to streamline their operations without compromising on the quality of education.

The Slow Road of Traditional Cost-Cutting Measures

In response to financial strain, many universities are resorting to organisational redesigns, such as restructuring departments and cutting underperforming courses. While these measures can lead to cost reductions, they often take a long time to materialise. Courses may need to be wound down over several years, leading to a delayed realisation of benefits and return on investment (ROI).

Given the urgency of the current situation, relying solely on traditional approaches may not be sufficient to safeguard the financial sustainability of universities.

The Fast-Track Solution: AI and Automation

This is where AI and automation come into play. By integrating these technologies into university operations, institutions can accelerate cost-saving measures while unlocking long-term value. AI and automation provide immediate relief by reducing the administrative burden, freeing up staff capacity to focus on higher-impact work, and improving operational efficiency.

The key benefits of implementing AI and automation include:

1. Reduction in Administrative Workload
   University staff often spend significant time on repetitive, manual tasks, such as data entry, managing timetables, or processing student applications. AI-driven tools can handle these tasks with greater speed and accuracy, freeing up time for staff to engage in more meaningful work, such as student support or research.
2. Optimisation of Student Services
   Automation can enhance the student journey by streamlining processes like enrolment, course registration, and grading. By automating these functions, universities can provide a smoother and more personalised student experience, improving satisfaction while reducing operational costs.
3. Data-Driven Decision Making
   AI can also help institutions make smarter decisions by analysing large datasets related to student performance, retention, and course demand. Predictive analytics tools can identify trends and potential issues, allowing universities to proactively adjust their strategies and resources for better outcomes.

Critical Success Factors for AI Implementation

While AI and automation present exciting opportunities, their success hinges on certain critical factors:

1. Leadership Buy-In
   For any AI initiative to succeed, it’s crucial to have support from senior leadership. University leaders must understand the potential of AI and automation, not only as a cost-saving tool but also as a means of enhancing the student experience.
2. Clear Objectives and Metrics
   Universities need to define clear goals and success metrics before implementing AI solutions. Whether the aim is to reduce costs, improve student retention, or enhance administrative efficiency, having measurable outcomes will ensure that the implementation delivers tangible benefits.
3. Training and Upskilling Staff
   While AI can take over many administrative tasks, the human element remains essential. Universities must invest in training and upskilling their staff to work alongside AI tools, ensuring they can maximise the benefits of the technology while maintaining a high level of student engagement and support.
4. Ongoing Evaluation and Adaptation
   Implementing AI is not a one-time exercise. Institutions need to continuously evaluate the effectiveness of their AI tools and adapt them to meet changing needs. By regularly reviewing performance and gathering feedback, universities can fine-tune their AI strategies to achieve the best results.

Conclusion: The Way Forward

With Brexit-related challenges and limited government support, it is a critical time for UK universities to rethink their cost structures. While organisational redesigns and course reductions are traditional approaches, they may take too long to deliver the necessary impact. AI and automation offer a faster, more sustainable solution, providing immediate cost relief and enabling universities to focus on what they do best—delivering high-quality education.

By embracing AI and automation, universities can streamline their operations, enhance student experiences, and unlock long-term savings, all while positioning themselves for a successful future in an increasingly competitive landscape.

UK universities are facing increasing pressure to balance their budgets, particularly with the uncertainty surrounding international tuition fees. As competition for students grows and operational costs rise, institutions are seeking innovative ways to deliver high-quality education while optimising resources. Automation, powered by AI, offers a timely solution to these challenges.

This white paper explores how AI and automation can transform the higher education landscape. We outline key use cases that demonstrate how universities can reduce administrative burdens, enhance student engagement, and improve outcomes. Additionally, we delve into the critical success factors necessary for implementing AI initiatives and provide insights on how to optimise the entire student journey, from enrolment to graduation.

By harnessing the power of AI, UK universities can not only reduce costs but also create more personalised, engaging experiences for students—ultimately positioning themselves for long-term success.

Introduction

Bradford University faced a significant increase in demand for a critical academic process, revealing the need for enhanced efficiency and productivity. This case study outlines how Hudson & Hayes partnered with the university to implement Lean principles and Intelligent Automation, ultimately improving the student and teaching experience.

The Problem

Bradford University experienced a substantial rise in demand for one of its key processes, necessitating a more efficient approach. There was a strong desire to boost awareness of Lean principles and Intelligent Automation across the organisation. Hudson & Hayes was engaged to work closely with the university to redesign the process, applying Lean techniques and exploring automation solutions. The primary objectives were to increase productivity, ensure consistency, and enhance both student and teaching experiences.

The Solution

Hudson & Hayes utilised the Elevate Process and Customer Journey methodology to take a structured approach to process improvement. Our team collaborated with the university's internal staff to:

• Map out current and future state processes
• Define roles and responsibilities (RACI)
• Assess the technology landscape
• Identify over 20 improvement opportunities

These efforts resulted in an identified 40% increase in productivity. Additionally, we developed a proof of concept (POC) for a workflow, demonstrating how the process could be digitised from end to end, moving away from the existing manual system. We also provided multiple educational sessions to build internal capabilities, focusing on Intelligent Automation in Higher Education and Lean principles.

The Outcome

The initiative delivered a future-state process that would reduce lead times and improved productivity by up to 40%. We presented a first iteration and a strategic plan to ensure ongoing process evolution, introducing the right solutions at the appropriate times.

The Feedback

"The University of Bradford recently had the pleasure of working with Hudson & Hayes to review our processes relating to how we manage academic misconduct allegations and investigations. From the outset, H&H colleagues worked in a proactive and collaborative way, helping us not only make our chosen process more efficient, streamlined, and fit for the future but also educating us about some of the fundamentals of lean process design and automation, which will be beneficial for multiple areas of the University. This opportunity for development was extended beyond the immediate project team to colleagues across our organisation, demonstrating Hudson and Hayes’ commitment to supporting partners holistically and not gatekeeping expertise within a single project that could benefit a wider audience. Throughout the project, the team at H&H took time to fully understand our context through engagement with a range of stakeholders and proposed solutions which were bespoke and realistic to this context, taking into consideration both our specific needs as well as any project parameters. On a personal level, the H&H team has been really enjoyable to work with. They have been very approachable and supportive, as well as accommodating and patient as together we have navigated the murky world of higher education administrative processes! I highly recommend them to other Universities or other organisations wishing to improve their ways of working through process redesign and automation."

Conclusion

Hudson & Hayes successfully supported Bradford University in enhancing process efficiency through Lean principles and Intelligent Automation. This collaboration not only improved productivity and reduced lead times but also equipped the university with essential knowledge for ongoing process enhancement.