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Students Cheat with AI in a Revenue-Driven Education System

Published February 3, 2025

The higher education sector is facing new challenges with the rise of generative artificial intelligence, often referred to as genAI. Much of the concern centers around the ethical dilemmas that come with student dishonesty.

Generative AI tools, like ChatGPT, provide students with easy and cost-effective ways to produce answers and essays on various topics.

This development presents a significant challenge for teachers, as traditional assessment methods may no longer be reliable. Faculty and administrative leaders in colleges and universities are now asking how they can accurately gauge students’ understanding of subjects.

Another crucial inquiry that remains largely unaddressed is: what existing factors within higher education contribute to the growing prevalence of genAI in academic dishonesty?

As argued in a recent article in the Journal of Interactive Technology and Pedagogy, the increasing use of genAI among students is not just a matter of individual misconduct but reflects the economic and structural conditions that currently define post-secondary education.

This does not excuse violations of academic integrity. Instead, it highlights that understanding the context is essential for educators to foster more meaningful and engaged learning experiences. It also indicates a need for systemic reforms in educational practices.

The Context of Neoliberalism

Since the mid-1980s, a political ideology promoting free markets and reduced government involvement has increasingly influenced both federal and provincial policies—this is often referred to as neoliberalism.

Under this framework, higher education has seen what can be termed a “neoliberal turn,” where successive administrations have allowed for significant cuts to public funding in areas like education, healthcare, and social services.

For instance, in Ontario, government funding accounted for 78 percent of university operating revenue in the fiscal year of 1987–88. By 2022, that figure had dropped to just 24 percent.

Similar patterns of declining public investment can be observed in higher education across the nation, as institutions increasingly rely on tuition fees for revenue.

The implications of these neoliberal policies for higher education include:

  • The perception of education as a personal investment rather than a public good due to decreased funding;
  • Rising tuition costs, which contribute to growing student debt;
  • A transformation in academic labor where about half of faculty are now part-time and paid less.

A report from 2018 highlights a link between reduced public funding and larger class sizes: only 25 percent of first-year courses had over 100 students in 2005, while this number jumped to 32 percent by 2018. Larger classes limit student-faculty interaction, resulting in a diminished learning experience.

Faced with declining funds, institutions have had to adapt by taking on competitive and cost-cutting strategies to survive.

As a result, universities have become increasingly focused on generating revenue and minimizing costs, leading to a priority on activities like research and grant applications over teaching.

The Consequences for Students

A recent survey by Wiley, examining over 2,000 undergraduate students in North America regarding academic integrity amid AI advancements, sheds light on the issue.

Among those surveyed, many acknowledged that tools like ChatGPT have made cheating more accessible. Almost half admitted that due to the high cost of education, there is intensified pressure to pass or score high marks.

Additionally, 36 percent reported a higher likelihood of cheating due to challenges in balancing academic workloads with work or family responsibilities.

Student Challenges

Numerous pressures affect students today. Neoliberal policies have led to drastic increases in educational costs, leaving many students to struggle financially as living costs rise alongside stagnant wages.

Most students I speak with work part-time jobs, with some juggling full-time work and a full course load or even more.

When larger groups of students are crammed into lecture halls, meaningful interactions between students and teachers become scarce. This lack of dialogue is vital for nurturing engaged and critical learning. Is it any wonder that students may feel a sense of detachment?

In the Wiley survey, students mentioned that they are more likely to cheat if they find course content irrelevant to their lives or the real world.

The Need for Change

These issues are not isolated to one institution; they reflect larger structural problems within the educational system.

The crisis surrounding student ethics and the use of genAI should be viewed in this broader context rather than simply as an issue linked to the technology itself.

With the right conditions, genAI and similar digital tools can potentially enhance engaged learning practices.

However, achieving this potential will necessitate major changes in the structure and pedagogical approaches of higher education institutions.

education, AI, neoliberalism, integrity, students