Education and research sector calls for governance and cost control for AI

Published today, the sector-wide AI statement (pdf) sets out a series of expectations for providers of AI-enabled products and services. It reflects growing recognition that AI is rapidly transitioning from an emerging technology to a strategic institutional capability, requiring institutions to make long-term decisions about affordability, governance, risk and dependency at a time when AI technologies, commercial models and supplier offerings are evolving at unprecedented pace.

While much public debate has focused on how staff and students use AI, sector experts say equal attention must be paid to the commercial, contractual and governance conditions that underpin its adoption. Decisions made today are likely to shape institutional flexibility, affordability and autonomy for years to come.

The statement argues that institutional leaders need greater visibility over how AI services are priced, how usage is measured, how costs may change over time, and how suppliers manage issues such as model changes, governance, data controls and interoperability. Without this transparency, institutions may struggle to forecast costs, demonstrate value for money, maintain effective governance or retain the flexibility to change providers, technologies or commercial models over time. Greater transparency is also essential if institutions are to understand how commercial models such as token-based charging, usage caps and differentiated access may affect participation, inclusion and the development of AI capability across their communities.

The publication comes amid growing interest from university leaders and sector bodies in the long-term implications of AI licensing arrangements. In its recent Future Jobs Roadmap, Universities UK highlighted the need for AI tools to be accessible to all undergraduate students and identified joint work with Jisc to develop effective and affordable sector agreements. Sector leaders argue that achieving this ambition will require commercial models that are transparent, sustainable and predictable for institutions over the long term.

Many institutions are now moving beyond experimentation and pilot projects towards institution-wide deployment. As AI becomes embedded in core systems and workflows, leaders are seeking clearer ways to compare costs, evaluate value and understand long-term implications before making significant investments.

The statement sets out six areas of expectation for the sector’s requirements:

1. Transparency at contract signature
2. Protecting value over time
3. Value for money and return on investment
4. Visibility, attribution, and cost control
5. AI supply chains, accountability and avoiding double payment
6. Large language model (LLM) transition, continuity, and portability

Together, these expectations are intended to create the transparency, governance and commercial foundations necessary for institutions to innovate and adopt AI-enabled products and services with confidence. Complementing this, our AI due diligence framework provides a practical mechanism for assessing how individual products meet those expectations, including in areas such as governance, transparency, cost control, value for money and supplier accountability.

Sector leaders believe these considerations should become standard elements of AI procurement and contract negotiations. The statement is intended to support sustainable and scalable adoption of AI. It calls on suppliers to work with universities and colleges to develop commercial and governance models that are transparent, predictable and accountable, enabling organisations to innovate with confidence while maintaining affordability, effective governance and strategic flexibility.

Caren Milloy, director of licensing, Jisc, comments:

“AI is rapidly becoming part of the fabric of teaching, learning, research and operations. As adoption scales, institutions need confidence that they remain in control of their costs, choices and risks. By setting out shared expectations for suppliers, we want to create the transparency, accountability and commercial foundations that will enable universities and colleges to embrace AI sustainably and with confidence."

Catherine Sezen MBE, director of education policy, Association of Colleges, adds:

“Generative AI has the potential to transform teaching, learning and operations across further education. To achieve that potential, colleges and other FE providers need the confidence, tools and governance frameworks to adopt AI responsibly, manage costs effectively, demonstrate value for money and ensure investments are sustainable over the long term.”

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