[4] By 1978, the school had approximately 300 students, and began to expand its course offering beyond fashion to areas such as commercial art, interior design, and business.

[5] In 2001, AIU was acquired by its current owner, Career Education Corporation, which is a publicly traded operator of for-profit schools.

Branch campuses were founded as follows: In 2009, AIU had over 15,000 students and offers a wide range of undergraduate and graduate degrees in programs such as business, IT, criminal justice, healthcare management, education, and media production.

[9] In March 2020, Capitol Forum reported that the U.S. Department of Education allowed AIU to defer $39 million in Title IV money to avoid violating the 90-10 rule.

A CEC representative stated in July 2007 that the issues at AIU's Los Angeles campus "have been addressed and most have long been resolved.

"[11] One of the most outspoken critics of AIU and CEC has been AIU's founder Steve Bostic, who alleged in 2005 that "CECO's Board has allowed management to lose sight of the Company's primary mission of providing quality education services; under these directors, CECO management has sacrificed the quality of student programs, resulting in the severe escalation of student attrition – all for the sake of a 'top-line growth strategy' that cannot be sustained.

"[12] On June 21, 2005, the U.S. Department of Education put a freeze on approving CEC's new applications for additional campuses or acquisitions while it examined the company's financial records and compliance with federal student aid regulations.

[15] In Diallo versus American Intercontinental University, students filed a class action lawsuit claiming that the school had defrauded them.

said were "erroneous, deceptive, or misleading enrollment and advertising practices", giving the schools 60 days to take "corrective action".

On February 18, 2008, American InterContinental University announced plans to gradually close down its Los Angeles campus.

George Miller, president of American InterContinental University, cited low student enrollment at the Los Angeles campus as the reason for this decision.

is a web-based tool that provides access to additional, interactive learning options that help students comprehend course material in a way that appeals to them.

The platform assesses students' current understanding of a topic and then tailors the type and order of the lessons presented to meet their individual needs.

[36] In 2009, AIU successfully sought to switch accreditation from SACS to the Higher Learning Commission (HLC) of the North Central Association of Colleges and Schools (NCA).

[38][39][40] School officials felt this was best since the majority of its students were served through its Internet-based campus which was based in the HLC geographic region.

An assistant inspector general stated in the report, "This action by HLC is not in the best interest of students, and calls into question whether the accrediting decisions made by HLC should be relied upon by the Department of Education when assisting students to obtain quality education through the Title IV programs."

8 on the internal Department of Education analysis obtained by The Center for Investigative Reporting that shows 133 for-profit colleges are so dependent on taxpayer money that they would be violating a law designed to prevent profiteering without a loophole that excludes GI Bill assistance to active duty military, with over 96% of revenue coming from these taxpayer funded programs.

"[13] In July 2008, former employees filed a lawsuit alleging that the school's admissions practices defrauded federal grant and loan programs.