The emergence of Large Language Models like ChatGPT has come with the promise to transform education. However, its advent has ushered in a new era of unprecedented opportunities and ethical challenges. This paper explores the dynamic nexus between artificial intelligence, ethics, and academic integrity in higher education. The study involved a theoretical review that largely utilized secondary data utilizing up-to-date methodical and meta-analysis of literature assessments and personal reflections on the practical application featuring ChatGPT's use among master's students at Aga Khan University. The study revealed that artificial intelligence tools have the potential to improve pedagogy and promote learning. However, it presents significant ethical concerns associated with maintaining academic integrity, including the risk of plagiarism, the stifling of critical thinking, and data privacy. The study recommends a balanced, responsible approach, supported by clear guidelines, ethical frameworks, and ongoing research to explore benefits of artificial intelligence.