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Purpose

This paper examines the integration of artificial intelligence (AI) in higher education to prepare graduates for an evolving digital landscape and future labour market demands, with specific reference to the Caribbean context.

Design/methodology/approach

The study adopts a mixed-methods approach, combining desk-based literature review with quantitative analysis of data from the innovation, firm performance and gender (IFPG) survey, which covers 1,979 firms across 13 Caribbean countries.

Findings

AI is shown to enhance teaching, learning and administrative efficiency through personalized learning systems, analytical tools and automation. However, adoption varies significantly across countries, sectors and firm sizes, with larger firms leading in uptake. The findings highlight the growing demand for AI-related skills and the need for curriculum reform to align education with labour market needs.

Research limitations/implications

The study relies on secondary data and survey evidence, which may not fully capture the rapidly evolving AI trends. Nonetheless, it provides a strong empirical basis for further research on AI integration and skills development in small island developing states.

Practical implications

The paper recommends curriculum innovation, faculty training, industry partnerships and investment in AI infrastructure to support effective integration in higher education institutions.

Social implications

AI integration can improve access, inclusivity and learning outcomes, but requires careful attention to ethical concerns, data privacy and potential inequalities.

Originality/value

The study contributes Caribbean-specific evidence linking AI adoption in industry with higher education reform, offering practical insights for policymakers, educators and stakeholders.

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