The White House issued an executive order seeking to preempt state AI regulations, arguing that a patchwork of laws could stifle innovation — a move that directly affects colleges integrating AI into instruction, research and campus operations. At the same time, corporate leaders warn of a deeper workforce gap: employers say AI has exposed a shortage of critical thinking and strategic skills among graduates. The twin developments put colleges between federal regulatory centralization and employer demands for new curricula. Education leaders must navigate compliance with a possible federal framework while accelerating curricular reforms that emphasize critical reasoning, ethics, and AI‑fluency. North Carolina State’s Dr. Mark Beasley told Fortune that AI “is now replacing the job,” underscoring the urgency for higher‑education institutions to pivot toward strategic‑thinking outcomes. Universities will face pressure to update outcomes, assessment, and career pipelines while advocacy groups and states debate how much local control to retain over AI governance.