The student journey: from application to alumni
3 minute read
Keith Martin
July 29th, 2026
The sector is under financial stress not seen in a generation, while AI has arrived faster than policy. Both pressures point at the same foundations.
Higher education is under real financial stress. Fees have not kept pace with costs in real terms, international recruitment has softened in some key markets, and pension and staffing costs keep climbing. The Office for Students has warned that, without action, around 45% of providers in England could be in deficit in 2025-26, with nearly one in six holding less than 30 days’ liquidity. Restructures, cost programmes, and difficult decisions on staffing and estates have become common; institutions that expanded rapidly during periods of growth are now being asked to optimise and rationalise.Two pressures pulling at once
Financial sustainability sits underneath every other choice, shaping how universities think about technology, estates, and staffing. Cyber risk sits right alongside it: universities have been targeted repeatedly by ransomware and state-backed actors, with research data a particular prize, and a serious breach now runs into millions and damages trust. At the same time, generative AI has arrived faster than policy. HEPI’s 2026 student survey found that 95% of undergraduates now use AI in some form, and 94% use it for assessed work.
What tends to make the difference
Cost and licence management can release cashable savings quickly, and a cloud-first base is often what makes difficult estate decisions, like data-centre exits, possible in the first place. Strong security protects both research and reputation, and a managed approach reduces the impact of incidents when they come. Everyday productivity is part of the same story: collaboration tools are everywhere in universities, but the depth of adoption varies widely, and governed AI for staff can save real time in a tight year.
AI is a present reality, not a future risk. With almost all undergraduates already using it, and most using it in assessment, treating it as emerging no longer matches the facts. Careful governance turns that reality into a credible academic position, supporting integrity and genuine teaching innovation rather than fear, and protecting the value of a degree.
Research and recruitment both lean on solid technology. Funded research needs secure data environments and serious compute, which trusted research environments provide; recruitment has grown harder at home and abroad, and a joined-up journey with better insight helps convert interest into places. The aim is a student experience that holds from application through to alumni.
People and continuity belong in the same conversation. Redundancy programmes have hit many institutions, putting hard-won knowledge at risk of walking out the door, so knowledge management matters. The compliance perimeter is wide, taking in data protection, research security, and the Prevent duty. On procurement, sector routes such as GÉANT OCRE and SLRA, alongside the Government Commercial Agency frameworks, keep buying compliant for complex, federated institutions.
The common thread is that these pressures are not separate problems. Financial sustainability, cyber risk, AI, recruitment, and research security all draw on the same foundations: clean data, sound security, and a sensible operating model. Institutions that treat them as one connected challenge, rather than a queue of unrelated projects, tend to make their limited money go further. Across the sector, the institutions making the most progress are rarely trying to do everything at once. They are choosing the few changes that unlock everything else. It is the difference between managing decline and quietly building something that lasts.
Student wellbeing has moved to the centre of the sector’s responsibilities, with demand for mental health and disability support growing faster than the services around it. Joined-up systems that let support teams see the whole picture, within clear consent, make the difference between early help and a missed signal. Compliance carries its own weight for institutions recruiting internationally, where sponsor duties around attendance and engagement are exacting and accurate data protects the ability to recruit at all. And efficiency is the quieter theme: understanding the true cost of activity is what lets leaders make cuts that protect the mission rather than hollow it out. The institutions that act early, and act together across these fronts, are the ones most likely to come through in good shape.
A question for the sector
Where do financial pressure and digital ambition pull hardest against each other for you? We would value hearing how your institution is balancing it.
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