Higher-education institutions are shifting from experimenting with AI to setting policies that govern classroom use, assessment and student support, sector analysts say. Coverage explores growing institutional efforts to set guardrails as schools move AI from novelty to operational tool, while faculty debate whether generative models belong in undergraduate instruction. Research from WGU Labs highlights four practical AI impacts for 2026 — emotionally intelligent assistants, more sophisticated AI-powered helpers for operations, a rise in alternative private providers using AI, and deeper focus on adult upskilling — signaling how campus services and workforce-aligned programming may evolve. Provosts, registrars and faculty senates must update academic integrity policies, redesign assessments to surface authentic student work, and invest in faculty development. Institutions that adopt clear AI governance and training will likely gain operational efficiency while preserving pedagogical standards.