Higher education in the Republic of Serbia needs to be reformed. This paper presents a performance analysis of the changes that the authors assume are mandatory, presenting the research problem this article addresses. Cabinet research, performed by analyzing the theoretical building blocks of available knowledge and experience, is underway. Articles and studies from various publications, such as academic journals and institutes, were used as sources. In addition, academic articles and papers and studies about artificial intelligence, machine learning, and extended reality were also consulted. The authors consider that these technologies could be of great assistance in developing a new higher education strategy. Further, this research is exploratory given that information from the 100 Serbian students from selected higher education institutions was used to better understand if these technologies are welcomed by students. Based on SmartPls software, the research analysis proved that artificial intelligence (AI) and machine learning (ML) are appropriate technologies implemented in higher education institutions (HEI) to develop skills among students, a collaborative learning environment, and an accessible research environment. Additionally, extended reality (XR) facilitates increased motivation, engagement, and learning-by-doing activities between students, offering a realistic environment for learning.