Colleges are cautiously adopting AI to improve administrative functions such as budgeting, enrollment management, and facility operations. While only about a third of college business officers reported AI use last year, this number is growing rapidly due to AI's potential to reduce workload and increase efficiency. Institutions benefit from low costs aided by in-house AI expertise and student labor. However, challenges in training and oversight remain as AI tools evolve quickly. The technology is poised to transform higher education management significantly.