A Systematic Review of Artificial Intelligence in Higher Education Institutions (HEIs): Functionalities, Challenges, and Best Practices

The rapid advancement of Artificial Intelligence (AI) technologies has significantly transformed teaching, learning, and research practices within higher education institutions (HEIs). Although a growing body of literature has examined the application of AI in higher education, existing studies remain fragmented, often focusing on isolated tools or outcomes, with limited synthesis of best practices, core functionalities, and implementation challenges across diverse contexts. To address this gap, this systematic review aims to comprehensively examine the best practices, functionalities, and challenges associated with the integration of AI in HEIs. A comprehensive literature search was conducted across major academic databases, including Google Scholar, Scopus, Taylor & Francis, and Web of Science, resulting in the inclusion of 35 peer-reviewed studies published between 2014 and 2024. The findings suggest that effective AI integration is supported by best practices, including promoting student engagement and interaction, providing language support, facilitating collaborative projects, and fostering creativity and idea generation. Key AI functionalities identified include adaptive learning systems that personalize educational experiences, predictive analytics for identifying at-risk students, and automated grading tools that improve assessment efficiency and accuracy. Despite these benefits, significant challenges persist, including limited knowledge and skills, ethical concerns, inadequate infrastructure, insufficient institutional and management support, data privacy risks, inequitable access to technology, and the absence of standardized evaluation metrics. This review provides evidence-based insights to inform educators, institutional leaders, and policymakers on strategies for leveraging AI to enhance teaching, learning, and research in higher education.