Generative artificial intelligence (GenAI) to improve financial sustainability of South African universities

Abstract

This study investigates how generative artificial intelligence (GenAI) can enhance the financial sustainability of South African public universities by addressing cost pressures and revenue challenges. A qualitative, exploratory design was adopted, involving nine semi-structured interviews with senior finance, technology and cyber security executives; the data were analysed thematically. Key findings indicate that GenAI can enable substantial cost savings (through automation of routine administrative financial tasks and data-driven budgeting) and create new revenue opportunities (such as AI-enabled products, online micro-courses, improved student recruitment, dynamic pricing, and targeted fundraising). However, success depends on factors like data quality, IT infrastructure, and staff skills. The study contributes to theory by linking AI adoption frameworks with university finance strategy and filling an empirical gap in research on GenAI in South African higher education finances. In practice, it offers a conceptual framework and recommendations to guide academic leaders in integrating GenAI into financial planning, providing actionable insights for balancing cost-efficiency and revenue generation in resource-constrained institutions.