This pilot study explores the integration of artificial intelligence (AI) and a commercial reading assessment tool to enhance differentiated instruction for first-year students requiring continuous literacy development. Grounded in the Funds of Knowledge framework and Activity Theory, the study investigates how AI-driven strategies can leverage students’ cultural and intellectual resources to personalize learning and support academic persistence. With many adult learners facing challenges in accessing and engaging with online instruction, this research addresses a pressing need for innovative, adaptive approaches that bridge gaps in academic readiness and support success in higher education.

The study is guided by three research questions:
(1) How can AI tools differentiate instruction to support literacy development in first-year students?
(2) What features of AI-based tools are most effective in improving reading skills?
(3) What impact does AI-supported differentiation have on student success and progression?

A review of current literature suggests that while AI has proven effective in enhancing self-directed learning and personalization, its application in postsecondary differentiation remains limited due to structural and pedagogical barriers. Through the lens of AI, this study examines the potential to scale differentiated instruction practices that are typically underutilized in higher education. By using adaptive technology, educators may better meet individual learning needs and foster equitable academic environments. The findings will inform entry-point faculty on best practices for integrating AI tools to address literacy gaps, enhance motivation, and support student retention. Ultimately, this research contributes to the discourse on educational equity by demonstrating how AI can be used not only to meet diverse student needs but also to incorporate students’ lived experiences into pedagogical design. The study offers insights for educators, curriculum designers, and institutions seeking to implement effective, inclusive teaching practices in digitally mediated learning environments.

Keywords: Artificial intelligence, literacy support, first year students, student success, self-directed learning, adult learners, adult literacy.