Logging on: Are universities underestimating the potential of market-leading digital education?

The higher education sectors in Australia, the UK, Canada, and New Zealand face a zeitgeist characterised by existential threats, shaped by geopolitical shifts, economic uncertainty, and deepening societal fractures. Amidst all this, universities risk falling even further behind global advances in digital and AI, underestimating the importance and impact of digital education.

Digital education can expand access for under-represented and regional students and sustain greater international engagement for universities, but concerns remain about quality, cost, and competitiveness. Although online delivery is often assumed to be cheaper, it can be as costly as in-person teaching and risks becoming transactional, driving pricing pressures. Yet when done well – incorporating universal design, strong student support, and the right operating model – online education can at least match in-person quality.

Universities have been slow to enhance their digital learning products and capabilities. A global survey by Nous Group revealed that 40 per cent of students prefer fully online or hybrid education. Additionally, 73 per cent of students rated their institution's online learning quality as good or very good, emphasising the importance of high-quality digital delivery. At the same time, online students tend to have completion rates that are 10-20 per cent lower than their on-campus counterparts, due to factors like part-time study, work, family commitments, and the perceived value of a full qualification.

To meet student preferences, universities must challenge historical assumptions and refine their digital education approaches. This includes having contemporary industry content, identifying the best approaches to synchronous versus asynchronous learning, and personalising learning pathways and supports using adaptive technologies. Transitioning to more interactive and engaging classroom formats will be key in ensuring that online learning is effective and appealing.

A significant barrier to success is the limited training available to faculty in high-quality online teaching. Universities must prioritise professional development programs that equip educators with the necessary skills to deliver impactful digital learning experiences. Only by investing in faculty training can institutions overcome this barrier and improve the overall quality of their online education offerings.

University staff are rapidly improving their AI adoption rates. A recent Ellucian report found that 71 per cent of university staff are using generative AI for work. However, students continue to adopt AI at an even greater rate, with over 90 per cent reporting AI use in some form.

Nous has found that, while AI adoption has improved among university staff, many are using AI in defensive ways, such as plagiarism detection and exam security. They should now shift to more offensive approaches, such as investing in personalised learning through AI, developing intelligent tutoring systems, and leveraging predictive analytics.

Scaling is one of the larger issues that universities face in seeking better AI adoption rates. To that end, universities should seek to further leverage third-party education solution providers such as Studiosity and Cadmus. This way, costs are defrayed, and specialists drive AI technology integration at a faster rate than in-house teams.

While digital education may help to sustain international enrolments in the face of policy restrictions, universities remain sceptical. A recent international education survey by Nous found that less than 50 per cent of universities plan to increase their investments in offshore online delivery and that only 30 per cent view online-only as a preferred TNE option.

There is legitimacy in this scepticism. Scaled offshore online learning has been difficult to achieve and there are more than a few international jurisdictions that do not think that an online qualification is legitimate (e.g. China and India). Nonetheless, online education is a reality and select universities, such as Heriot Watt, have done well. Universities that do invest in online offshore investment must deliver:

• Flexibility – Flexibility allows students to tailor their education to their needs, starting, pausing, or resuming their studies with ease. This minimises entry and exit barriers, making education more accessible and appealing.
• High quality – Hybrid and asynchronous learning models cater to the diverse needs of international students, while online programs significantly cut costs by eliminating the need for relocation. However, universities must ensure the integrity of their online courses by investing in robust digital pedagogy and maintaining rigorous assessment standards.
• Local need – Online degree offerings must be demand-led and have a value proposition that meets local employability needs. Offshore online degree offerings often do best when they fill a local gap in their offshore market.
• Price credibility – Increasingly, online degrees are priced about 40 per cent lower than the equivalent on-campus qualification. For these degrees to wash their face, universities need to rethink their historical education operating models. 

All the while, universities must think differently about their operating models to deliver online education to offshore markets. This includes the delivery of content by a more globally located workforce, academic and administrative student advisory services that operate on a 24/7 model, and local specialists to deliver meaningful marketing and recruitment support.

Digital learning offers a critical way for universities to expand access, engage globally, and respond to shifting student and workforce needs. But it won’t be easy. Addressing the digital divide is critical: many students, particularly those from under-represented groups, still face barriers in accessing technology and developing digital literacy. Without proper support, including affordable devices and targeted training, digital learning risks widening rather than closing educational gaps. Moreover, concerns around academic integrity in online environments, particularly with the rise of generative AI and its impact on assessments, require universities to develop defence strategies to uphold standards and maintain trust. 

To succeed, institutions must pair digital education investments with enterprise-wide change management, as well as role and process redesign, ensuring that digital is embedded in how universities operate, teach, and support students. By focusing on refined digital learning strategies, faculty capability building, and robust AI-enabled infrastructure, Universities can create more inclusive, flexible, and financially sustainable education models, well-positioned to thrive in a rapidly evolving world.

Get in touch to discuss how your university can embrace digital learning to better position itself in a competitive market.

Connect with Zac Ashkanasy on LinkedIn.