Reconceptualizing instructor roles and institutional readiness in the AI era: stakeholder perspectives on Gen Z competency development in higher education

Purpose This study investigates the transformative impact of artificial intelligence (AI) on higher education, specifically focusing on the redefinition of instructor roles, pedagogical transformations and the necessity of institutional readiness. It aims to understand how these factors collectively influence the development of emerging competencies among Gen Z learners in emerging economies like India. Design/methodology/approach The research employs a quantitative approach using partial least squares structural equation modeling (PLS-SEM). Data were collected from faculty and administrators in Indian higher education institutions to evaluate the relationships between institutional implications, pedagogical transformations, changing instructor roles and emerging student competencies. Findings The results reveal that institutional readiness and governance are decisive enablers of pedagogical change and instructor role redefinition. Pedagogical transformations were found to have the strongest direct effect on the development of emerging competencies. Notably, institutional implications influence competency development primarily through the mediation of pedagogical shifts rather than direct intervention. Originality/value This study contributes a novel empirical framework that links institutional governance with micro-level pedagogical changes and instructor identity shifts. It highlights the “performance–importance gap” in institutional AI readiness, offering a unique perspective on how emerging economies can navigate the structural dualities of rapid innovation and infrastructural limitations.