This paper explores the potential of generative artificial intelligence (AI) to transform higher education. Generative AI is a technology that can create new content, like text, images, and code, by learning patterns from existing data. As generative AI tools become more popular, there is growing interest in how AI can improve teaching, learning, and research. Higher education faces many challenges, such as meeting diverse learning needs and preparing students for fast-changing careers. Generative AI offers solutions by personalizing learning experiences, making education more engaging, and supporting skill development through adaptive content. It can also help researchers by automating tasks like data analysis and hypothesis generation, making research faster and more efficient. Moreover, generative AI can streamline administrative tasks, improving efficiency across institutions. However, using AI also raises concerns about privacy, bias, academic integrity, and equal access. To address these issues, institutions must establish clear ethical guidelines, ensure data security, and promote fairness in AI use. Training for faculty and AI literacy for students are essential to maximize benefits while minimizing risks. The paper suggests a strategic framework for integrating AI in higher education, focusing on infrastructure, ethical practices, and continuous learning. By adopting AI responsibly, higher education can become more inclusive, engaging, and practical, preparing students for the demands of a technology-driven world.