Non-compensatory Decision-Making in the Integration of Artificial Intelligence in Higher Education in Azerbaijan

The accelerated development of artificial intelligence (AI) is changing the landscape of higher education, creating new opportunities to enhance teaching and learning processes. The aim of this study is to assess the potential of AI technology integration in Azerbaijani universities. The study combines a review of the literature on digitalization and AI in education with empirical data obtained from an online survey conducted among faculty and students of higher education institutions in Azerbaijan (305 respondents), analyzed using logistic regression models. The results show that perceived benefits significantly increase the probability of AI adoption (average marginal effect of about 3.5 percentage points per additional perceived benefit), whereas perceived risks, the benefit–risk interaction, and perceived teacher competence have no statistically significant effect. The effect of perceived benefits is concentrated among academic staff, while students’ use of AI depends neither on perceived benefits nor on perceived risks. This pattern provides no evidence of a compensatory benefit–risk trade-off and is consistent with a benefit-dominated, non-compensatory decision rule reflecting bounded rationality. The literature review indicates the high potential of AI application in educational practice: AI technologies contribute to the personalization of learning trajectories, automation of routine academic and administrative tasks, provision of timely and high-quality feedback, and the development of adaptive and scalable educational content. At the same time, the literature points to challenges such as ethical issues related to data privacy and security; insufficient levels of digital competence among the teaching staff; the need for continuous professional development; and the need to ensure compliance with existing legal and regulatory frameworks. The study concludes that addressing these issues is essential to the responsible, sustainable implementation of AI technologies in academic environments. Overall, the integration of AI into higher education represents a highly promising direction for future development, with the potential to significantly improve the quality, accessibility, and personalization of education, as well as enhance graduate readiness for the changing demands of the global labor market.