The integration of Artificial Intelligence (AI) in higher education has transformed the educational landscape, influencing teaching, learning, research, and administration. Intelligent tutoring systems, automated grading tools, and predictive analytics have enhanced efficiency and personalization. Yet, these innovations have brought forth significant ethical challenges concerning privacy, bias, accountability, and academic integrity. This paper critically examines the major ethical challenges arising from the use of AI in higher education. It argues that while AI holds immense potential to promote inclusion and innovation, unchecked implementation risks reinforcing inequalities and undermining the moral foundations of education. The study further suggests that responsible governance, transparency, and ethical literacy are essential to ensure that AI serves as a means to strengthen, not replace, the human dimension of education.