Survey and reporting data show faculty are driving campus conversations about appropriate AI usage, setting classroom expectations and defining pedagogical boundaries rather than central administrators. The trend reflects instructors taking operational ownership of AI policy in classrooms and students reporting clearer guidance from faculty than from institutional offices. At the same time, critiques argue many universities risk irrelevance by failing to embed AI strategically across governance, curriculum, pedagogy and research. Observers call for coordinated institutional commitments — not just pilot projects — to integrate AI responsibly and to align accreditation, learning outcomes and faculty development with new capabilities. Why it matters: The split between faculty-led classroom norms and slower institutional change raises compliance, assessment and accreditation questions; campuses must translate instructor-level practices into coherent institutional policy to meet external review standards and protect academic quality.