Background: The rapid advancement of artificial intelligence (AI) has significantly impacted various sectors, with higher education institutions (HEIs) being no exception, necessitating strategic changes to harness its benefits, such as enhanced educational practices and efficiency, while addressing challenges like ethical concerns and job displacement risks. However, the integration of AI in higher education (HE) is not uniform and varies across various disciplines, influenced by factors such as technological readiness, professional culture, and stakeholders. By applying contingency theory, insights are provided into the alignment of organizational strategies with specific environmental factors.

Purpose: The purpose of this study is to investigate the impact of the rise of AI on strategic changes within HEIs and examine how these changes are contingent on distinct organizational cultures across various disciplines.

Method: A single case qualitative study was utilized with an abductive approach, collecting empirical data from 10 participants with roles of higher responsibility in the HEI through semi-structured interviews. Additionally, a thematic analysis was used to examine the gathered data.

Conclusion: The findings of this study reveal that the rise of AI necessitates strategic changes within HEIs, driven by opportunities and challenges. Integrating AI is seen as an ongoing process requiring flexibility and adaptability to changing environments, related to contingency theory. While some institutions begin to incorporate education about AI and develop guidelines, full implementation is still in the planning stages for many. The study underscores variations in AI adoption across disciplines, highlighting the need to tailor strategies to organizational cultures, including aspects such as different professional cultures and technological readiness cultures. Ultimately, this research enhances the understanding of strategic change management as a reaction to the rise of AI, offering an overarching framework for HEIs to adapt to a dynamic educational environment.