Macquarie University has introduced a significant change to two mandatory Psychology units by substituting traditional in-person classes with an AI-powered system known as Virtual Peer, supplemented by online readings, quizzes, videos, and optional online tutorials. The university characterizes the AI activities as optional additions that support rather than replace core learning materials. Student assessment occurs through separate research tasks and exams, with neither the core content nor AI interactions being mandatory. The university indicated that in-person instruction will return in 2027 on an alternating semester basis, allowing students to select the format that best accommodates their circumstances.
One anonymous student expressed dissatisfaction with the arrangement, citing forced enrollment in the online format due to degree structure requirements. The student compared the experience unfavorably to traditional group discussions and tutor-led instruction, expressing concern about AI replacing teaching positions. Each psychology subject carries a cost of $2,174 for Australian students with commonwealth support in 2026. Macquarie stated that the Virtual Peer tool was developed collaboratively with educators and is customized through professor input and oversight, potentially reducing errors common in general-purpose AI systems. The institution monitors student conversations within the service and maintains paid tutors who conduct optional weekly Zoom sessions, though attendance varies.
Virtual Peer has expanded considerably, processing close to 80,000 student questions during 2025 and nearly equivalent volume in the first half of 2026, primarily administrative inquiries. The university reports that surveyed staff and students predominantly rated the tool as valuable. Macquarie joins the University of Melbourne and University of Sydney in systematically incorporating AI into teaching operations. Academic researchers note the concurrent reduction of in-person instruction alongside AI introduction is noteworthy within Australian higher education. The University of Sydney released a discussion paper outlining scenarios where AI assumes expanded roles in personalized instruction while staff-student contact hours decrease.
The AI integration has sparked workplace concerns within the sector. The national tertiary education union at the University of Sydney has scheduled a strike to advocate for AI protections and address job security concerns. Union leadership expressed apprehension that staff reductions and workload increases could result from AI implementation. The University of Sydney characterized the strike as premature, arguing that AI’s rapid advancement warrants institutional discretion through policy frameworks rather than fixed enterprise agreements. National union leadership pledged to pursue workplace agreements addressing AI protection across the sector.
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