Join us in conversation with Laura Bailey, software and education expert
This article explores the evolving landscape of AI in custom software development within higher education, highlighting its growing importance for universities seeking to enhance student experiences and streamline operations. Through a Q&A format with expert Laura Bailey, readers will gain insights into current challenges, opportunities, and practical considerations facing CIOs and CTOs in the sector.
The model is under pressure from every angle. Universities are still being asked to do more with less, while still delivering standout student experiences. That’s a tough brief when your technology estate is stitched together from decades of legacy systems.
AI and custom software development are stepping in as the differentiator. It’s not about replacing everything. It’s about building what doesn’t exist yet, the glue between systems, the intelligence on top of your data and the experiences that students now expect.
In fact, improving student experience is now the top driver for custom software investment, with 41% of institutions citing it as the primary reason to build rather than buy.
| 👉 Our latest report breaks down exactly where AI-led custom solutions are delivering the biggest impact across the student lifecycle. You can download it here. |
They already do — but that’s the point. Most institutions, quite rightly, operate a hybrid model of COTS and custom. The issue is that off-the-shelf systems weren’t designed for today’s demands: modular learning, real-time data, AI integration.
AI and custom software development fill those gaps.
Think about it like this:
• COTS gives you stability
• Custom gives you differentiation
• AI brings the two together intelligently
What we’re seeing is a shift where custom becomes the “experience layer” on top of existing platforms — especially where integration and personalisation matter most.
| 👉 Our report explores how AI is accelerating this shift and why 95% of education leaders believe it’s changing the build vs buy equation. |
Well, it’s certainly not a lack of ambition. Universities have abundant AI ambition and are very clear about where they want to go. The blockers are more structural.
We see three challenges come up consistently:
• Integration with legacy systems
• A lack of internal AI and engineering expertise
• Infrastructure that isn’t ready to scale AI
For example, 42% of institutions say integration is a major challenge and the same percentage struggle accessing the right AI expertise.
This is why custom software development isn’t just about building shiny new features. It’s about modernising the foundations, data, architecture and integration layers.
| 👉 We go deeper into these barriers (and how to overcome them) in our latest report. |
It’s flipping the conversation from cost to value.
Historically, institutions asked:
“What’s the cheapest way to do this?”
Now they’re asking:
“What will still deliver value in five years?"
That’s a big shift.
• 98% of education leaders say they would pay more for long-term value
• ROI is increasingly measured through productivity, experience, and outcomes, not just cost savings
AI in custom software development enables this because it creates adaptable systems, not fixed products.
| 👉 Our report unpacks how universities are redefining ROI in AI-driven institutions. |
Honestly? It’s everything.
You can’t layer AI onto disconnected systems and expect meaningful outcomes. If your data is fragmented, your AI will be too.
That’s why integration has shifted from a technical concern to a business priority.
In higher education, disconnected systems across admissions, learning, finance, and wellbeing create friction across the entire student journey. Custom software — powered by AI — is what orchestrates those systems into something coherent.
| 👉 The report calls this out clearly: integration is both the biggest driver and the biggest barrier to success. |
Yes, but not consistently.
There’s a noticeable gap between ambition and execution:
• 45% of custom software projects exceed expectations, but
• 22% fall below expectations
That gap often comes down to delivery maturity, governance, integration and capability.
The institutions seeing the best outcomes are the ones that:
• Treat integration as strategic
• Invest in long-term architecture
• Work with partners who understand the sector (like NashTech!)
| 👉 The full report breaks down what separates high-performing institutions from the rest. |
Start smaller than you think, but think longer-term than you’re used to.
Pick one high-impact journey. Admissions. Enrolment. Student support. Then ask:
• Where are we relying on manual workarounds?
• Where is data duplicated or delayed?
• Where is the student experience breaking down?
Then fix that, using custom software development as the enabler.
| 👉 That’s exactly the approach we outline in the report, with practical guidance you can apply immediately. |
This Q&A scratches the surface. The full report dives into:
• Real data from 100+ education leaders
• AI adoption patterns and timelines
• Integration and governance best practices
• What “value” actually means in 2026
| 👉 Download the full report here: https://eu1.hubs.ly/H0w8MHz0 |