Abstract
<jats:p>This chapter examines the growing misalignment between data-rich digital learning environments and fragmented, weakly verifiable academic credentialing in higher education. Adopting a design-science perspective, it conceptualises digital identity and verifiable learning records as the trust foundation for responsible AI-enhanced credentialing on smart university campuses. The chapter proposes a five-layer reference architecture integrating learner-centred digital identity, verifiable credential fabrics, AI services for recognition of prior learning and competency inference, embedded governance mechanisms, and event-driven integration with legacy campus systems. Rather than presenting a technical blueprint, the chapter offers a governance-aware conceptual framework intended to support portability, transparency and accountability in credentialing practices. It argues that verifiability, learner agency and bounded AI autonomy must precede large-scale automation if AI is to be used responsibly in academic recognition and decision-making.</jats:p>