With rapid development in the IT world, technologies are becoming more dynamic and advanced. Today, technologies are changing with customer requirements. In the IT world, research is carried out to make technology better to meet the requirements that change with time. With the advancement in the IT world, online services have proliferated. Now a days, cloud computing is the hottest buzzword in the IT world. Cloud computing is not limited to the E-Governance and business worlds, but is also making a great impact in the education world. With growing demand for education, technologies and research, all universities and education institutions have their eyes on cloud computing. The main pillars of educational institutions are students, faculties, administrations and libraries. Faculty and students do research and need quality data while students of a particular field need a subject-oriented knowledge. Manually getting these kinds of data is time consuming as students depend on literature, books, different kind of software and hardware. With cloud computing in higher education, cost-effective measures can be taken to minimize the dependency on books, hardware and software. In this paper, we discuss how Artifical Intelligence based cloud computing in higher education will improve quality and ease the process of getting e-resources (software/hardware platform, storage etc.). This study will help in understanding effective cost-cutting measures. We also discuss how cloud computing in the library and administration will brighten the education prospects.