Cost of AI adoption may not lead to fee hike: University of Toronto chief

Melanie Woodin says operational efficiencies and tech partnerships will offset soaring computing and cybersecurity costs

The adoption of artificial intelligence (AI) is set to raise overall costs for higher education institutions, but universities are unlikely to pass the additional expenditure on to students through higher fees, University of Toronto President Melanie A Woodin said.

 

Universities could offset the additional spending through efficiency gains from using AI in their operations and partnerships with technology companies, she said, adding that the additional costs would include AI licences and investments in computing, information technology, information security and cybersecurity.

 

“The technologies are expensive and we've got very significant financial investments in them, but we do not see them translating into increased fees. In fact, we're recognising that we're now using these technologies in place of other operations that we would have done. And like many organisations we’re adopting AI into our operational workflows of how we run our organisation, so there will be cost savings in some areas that we use to offset on the advancements we're making in AI,” she said, adding that partnerships with technology companies could also provide access to computing resources and advanced AI models.

 

The University of Toronto has partnerships with AI companies including OpenAI, Anthropic and NVIDIA, with some faculty research laboratories sponsored by these companies or operating as joint research labs, Woodin said. 

 

Universities also need secure AI systems of their own to protect student and institutional data and control how it is accessed and used, she said. The university’s AI Kitchen provides a secure environment with vetted AI tools and different levels of access, from chatbot tools for students to advanced models for researchers.

 

“It is critical for universities to have their own, secure software to ensure privacy. You also need extensive expertise in IT, in info security, cybersecurity, to make sure that you can create a digital ecosystem that allows students and faculty access to all the tools they need in a safe way,” she said.

 

The University of Toronto is seeking to attract more students from India as Canada looks to strengthen talent and education ties with the country, Woodin said, adding that uncertainty around international student policies in the US and other destinations had created an opportunity for Canada. She said the university had sufficient capacity to recruit more students from India and that more than 90 per cent of its international students received study visas, while the university also provided admitted students with an immigration concierge service to help them navigate documentation and application timelines. 

 

Woodin, who accompanied Canadian Prime Minister Mark Carney during his India visit in March, said the improving ties between the two countries, including the Canada-India Talent and Innovation Strategy, were creating opportunities for universities to expand research and talent partnerships. With Prime Minister Narendra Modi expected to visit Canada later this year, Woodin said the University of Toronto was looking to expand its research partnerships with Indian institutions, including in artificial intelligence.

 

“To build on this talent and innovation strategy more broadly in advance of Prime Minister Modi's planned trip to Canada, which will happen at the end of this year, we are really actively taking steps to not only have a signed agreement, but real concrete partnerships and activities in place,” she said.

 

The Canada-India Joint Talent and Innovation Strategy was launched in February 2026 with 13 partnerships between Canadian and Indian educational institutions. The strategy covers research exchanges, student mobility and joint programmes, and is aimed at strengthening academic cooperation, innovation ecosystems and two-way talent flows between the countries.

 

On the impact of AI on teaching, Woodin said the University of Toronto was incorporating AI literacy into its curriculum and adapting assessments to reflect how students could use the technology as a learning tool. For instance, students could use AI tutors to work through concepts before returning to the classroom for discussions, debates, presentations and team-based problem solving, she said, adding that universities needed to focus on creativity, curiosity and responsible use of AI.

 

Woodin said universities could not reliably predict how the job market would evolve even three to six months ahead, making it difficult to prepare students for specific roles. Instead, the university was focusing on durable skills such as critical thinking, problem solving, communication, ethical responsibility and lifelong learning, which would help graduates adapt as technology reshaped the workplace, she said.