Nearly half of those polled said they would rather invest in AI tools than hire and train a recent college graduate.
Institutions can immediately consider Classic Learning Test scores for certain applicants as the state higher education board looks to revise its policies.
The ruling marks another victory for the U.S. Department of Justice, which has sued more than a dozen states over similar policies.
The university faced outcry and a lawsuit over its decision to eliminate sports last year as part of broader cuts to close a $24 million deficit.