This paper examines the potential benefits and challenges of using the generative AI model, ChatGPT, in higher education, in the backdrop of the constructivist theory of learning. This perspective-type study presents five benefits of ChatGPT: the potential to facilitate adaptive learning, provide personalised feedback, support research and data analysis, offer automated administrative services, and aid in developing innovative assessments. Additionally, the paper identifies five challenges: academic integrity concerns, reliability issues, inability to evaluate and reinforce graduate skill sets, limitations in assessing learning outcomes, and potential biases and falsified information in information processing. The paper argues that tertiary educators and students must exercise caution when using ChatGPT for academic purposes to ensure its ethical, reliable, and effective use. To achieve this, the paper proposes various propositions, such as prioritising education on the responsible and ethical use of ChatGPT, devising new assessment strategies, addressing bias and falsified information, and including AI literacy as part of graduate skills. By balancing the potential benefits and challenges, ChatGPT can enhance students' learning experiences in higher education.