Artificial Intelligence is transforming economies, industries and education systems globally. As organisations invest more in AI policies and introduce new initiatives, universities have started to face a rising pressure to not only adapt with the current trends but also to shape the conversations surrounding them.Traditionally, universities have been reviewed as recipients of policy. However, in the current times, they are becoming active contributors to AI policy development, governance discussions, and national innovation agendas.This shift reflects the growing influence of universities within the broader AI ecosystem, which can also be seen through various events that have recently been organised by the government. It helps universities showcase their AI readiness through the students and their innovations in the growing sector of AI. One such example of this is the India AI Impact Summit, 2026 wherein various universities across the country participated and showcased student-led innovations. The summit highlighted how higher education institutions are moving beyond classroom learning to actively contribute to the development of AI solutions, and innovation ecosystems that support the country's broader AI ambitions.Government and policymakers are increasingly engaging with universities through consultation frameworks, advisory committees, research partnerships, and collaborative initiatives. In many cases, the universities are helping make informed decisions on AI governance, regulation, digital transformation, and future workforce development.As a result, the role of higher education is expanding beyond just teaching and research. Universities are increasingly expected to contribute insights that shape national AI priorities while preparing students and faculty for an AI-enabled future.This reflects a broader change in the role of higher education. Universities are no longer seen only as places where knowledge is created and shared. They are also expected to help society understand and respond to emerging technologies while preparing students for a rapidly changing world.As expectations grow, institutions face an important question which is ‘How prepared are they to lead in an AI-driven era?’ Answering that requires more than just adopting new technologies. It involves developing clear strategies, supporting faculty, strengthening research capabilities, building the right infrastructure, and creating an environment where innovation can thrive.The institutions that can demonstrate this readiness are often better placed to build partnerships, attract opportunities, and contribute meaningfully to conversations that influence the future of education and technology. Platforms like ET AI Ready provide a structured framework for institutions to assess, benchmark, and showcase their readiness. The next chapter of AI will not be shaped by governments or industry alone. Universities have an important role to play, and their contribution is becoming increasingly difficult to ignore as time passes by.