Abstract
Artificial Intelligence (AI) is rapidly transforming higher education systems across the world. Universities are increasingly integrating AI technologies into teaching, learning, research, administration, and student assessment. From intelligent tutoring systems and adaptive learning platforms to generative AI tools such as ChatGPT, AI has become one of the most influential technological developments in modern education. However, while AI creates new opportunities for improving educational quality, accessibility, and efficiency, it also raises significant ethical, institutional, and pedagogical challenges. This paper analytically examines the transformation of higher education through AI technologies, beginning with a global overview and later focusing on Uzbekistan as a developing educational ecosystem undergoing rapid digital reforms. The study explores the benefits of AI integration, including personalized learning, automation, research enhancement, and administrative efficiency, while also analyzing challenges related to academic integrity, digital inequality, infrastructure limitations, faculty readiness, and ethical concerns. The paper argues that Uzbekistan has made substantial progress in digital transformation and AI policy development in recent years, yet the effective implementation of AI in universities still requires institutional preparedness, regulatory frameworks, teacher training, and technological investment. The article combines international literature with local Uzbek sources and policy documents to provide a balanced and human-centered analysis of AI in higher education
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