Students Embrace AI as Freshman Enrollment Increases

Rockville, MD– January 6, 2025 – Simba Information, the leading provider of market intelligence in educational publishing, announces the release of its The State of College Course Materials 2024-2026, a comprehensive report analyzing trends, challenges, and opportunities in higher education instructional materials. 

The report reveals a critical shift in the higher education landscape: students are embracing innovative learning technologies such as artificial intelligence (AI) at record rates, while systemic affordability challenges and shifting enrollment patterns reshape the market. With an 86% adoption rate for AI tools among students, technology is seeing widespread use among students, despite slow adoption by faculty (14%). These findings illustrate a growing divide in technology readiness between students and educators.    

Meanwhile, affordability remains a persistent barrier to education. Student spending on course materials dropped to a 16-year low of $342 annually due to the influence of Open Educational Resources (OER), inclusive access models, and digital-first solutions designed to reduce costs. However, even as material costs decline, the total cost of attending college—including tuition, fees, housing, and other expenses—continues to rise, making affordability a significant challenge for many students. As federal and state legislation demand greater transparency in material costs, publishers are racing to adapt to these shifting dynamics while maintaining market share. 

The report also highlights the rise of micro-credentials, with enrollment in short-term undergraduate certificate programs growing by 8.47%. This trend underscores a demand for workforce-oriented education and flexible learning paths. With total undergraduate enrollment increasing by 3.43% but first-year enrollment increasing by 5.5%, the findings reveal the complexity of postsecondary education trends heading into 2025.  

Key Trends from the Report    

• AI adoption: While students adopt AI for learning at high rates, faculty adoption lags behind, highlighting a need for professional development and innovative solutions.    

• Spending on course materials: Average student spending on course materials has hit its lowest point in 16 years, driven by the adoption of OER and cost-cutting measures.    

• Micro-credentials growth: Enrollment in short-term undergraduate certificates increased by 8.47%, reflecting a shift toward workforce-oriented education.    

• Enrollment trends: Total undergraduate enrollment rose by 3.4%, while freshmen first-year enrollment increased by 5.5%, reversing previous declines.  

One of the most significant trends identified in the report is the accelerating adoption of artificial intelligence by students, with 86% regularly using AI for academic support. Students leverage AI tools for tasks like research, writing, and personalized learning, emphasizing its growing role in education.    

However, faculty adoption lags significantly at just 14%, as concerns about academic integrity and low confidence in using AI persist. This gap represents both a challenge and an opportunity for institutions and publishers to foster professional development and create AI-driven learning materials that enhance teaching outcomes. Leading publishers like Pearson and McGraw Hill have already begun investing in AI-driven content delivery to stay ahead of these trends.  

About Simba Information 

Simba Information, a part of The Freedonia Group, is widely recognized as the authoritative source for market intelligence in the media and publishing industries. The company’s extensive information network delivers thoughtful, objective perspectives on the people, events and alliances shaping the industry. In addition, Simba Information assists clients and the press with analysis of publishing and media industry trends. Reports can be purchased at freedoniagroup.com/simba-information. 

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