Beyond the Algorithm: Ethical Leadership and Human Values in the Digital Transformation of Higher Education

Abstract

Artificial intelligence (AI) is reshaping higher education at both structural and pedagogical levels. While institutions adopt digital tools to enhance efficiency and innovation, many fail to account for the ethical, cultural, and human consequences of AI integration. This paper argues that ethical leadership is essential in guiding institutions through digital transformation. Drawing on classroom observations from a Malaysian university and supported by current scholarship, the study identifies three critical challenges: gaps in digital competency, AI literacy, and ethical awareness. The ethical leadership framework is employed to analyse institutional responsibilities and highlight the importance of transparency, inclusivity, and moral reflection in technology adoption. Through a review of literature, field-based insights, and theory-led interpretation, this paper proposes practical recommendations for building AI literacy, designing authentic assessments, and embedding ethical reflection into academic life. The findings emphasise that digital transformation without ethical guidance risks undermining the core values of education.