The purpose of the article is to reveal the essence and substantiate the key vectors of perspective development of the innovation-oriented model of the art university of the future with the definition of potential challenges and transforma- tions from their implementation. The research methodology. The results of the study are obtained by applying the following methods: analysis and synthesis, de- duction and induction in the study of university management, key concepts of or- ganizational management and a systematic approach in determining the place and role of universities in ensuring sustainable development of modern society. The scientific novelty lies in the substantiation that the guarantor of successful sustain- able development of economic systems, namely ensuring economic growth, improv- ing the social welfare of the population and promoting the cultural prosperity of the nation, is the successful formation and further development of university edu- cation. The harmonization of relations between educational institutions with all participants in this process will provide tangible positive effects in the future. Conclusions. According to the results of the study, it is concluded that the identi- fied promising vectors for the development of innovation-oriented model of univer- sity management may also generate appropriate challenges and transformations in the management system of higher education. Therefore, the active participation of all stakeholders in the management process, as well as timely response and optimal management decisions by managers at all levels is a necessary condition for ensur- ing the development of the university sector in the modern globalization conditions. Keywords: higher education management; art university; educational services market; globalization challenges; transformation.