Online education enterprises at U.S. colleges and universities are experiencing significant growth in both budgets and revenue generation, even as they face mounting pressure to offset institutional funding shortfalls, according to a new national survey released by UPCEA, the online and professional education association.
"This report and its findings arrive at a critical time for postsecondary leaders," said Julie Uranis, senior vice president for online and strategic initiatives at UPCEA. "Given the instability in higher education, the insights and benchmarking opportunities in BOnES will help leaders make strategic decisions and understand the expected yield of investments in the online enterprise."
The survey findings come as online education has become increasingly central to institutional sustainability strategies. More than half of online units surveyed reported being tasked with reducing costs and generating additional revenue to support broader institutional shortfalls or address reduced funding.
The integration of artificial intelligence emerged as a significant trend, with nearly half of online enterprises reporting collaborative approaches to AI decision-making with institutional leadership. The most common AI applications include enhancing teaching practices (61%) and improving administrative efficiency (58%).
However, AI adoption patterns reveal uneven maturity across institutions. While some organizations demonstrate highly autonomous AI implementation, others lack formal processes altogether—a concerning gap given the rapid evolution and potential risks of generative AI technology.
"The data provided in this report help to provide clarity for those variables and other essential benchmarks for online leaders," said Bruce Etter, senior director of research and consulting at UPCEA, referring to the complex relationship between institutional investment and revenue generation in online education.
