Objective: The research aims to explore the integration of Artificial Intelligence (AI) within educational systems and analyze its impact on the governance of higher education institutions (HEIs), particularly focusing on decision-making, data protection, and administrative efficiency. Theoretical Framework: The article presents key theories on the transformative role of AI in educational governance, particularly focusing on how AI-driven data analysis and automation enhance decision-making and administrative efficiency. It also addresses theories related to ethical governance, emphasizing data protection and equitable access within higher education institutions. Method: The research methodology in this article is based on a qualitative approach, combining a review of existing literature with case studies of AI implementation in educational contexts. This approach provides in-depth insights into the effects of AI on governance within higher education institutions. Results and Discussion: The research findings highlight that AI integration in higher education governance improves decision-making and operational efficiency through data-driven insights and automation. However, it also reveals challenges, particularly in data protection, ethical concerns, and shifting power dynamics within institutions. The study emphasizes the need for responsible and transparent AI governance to ensure balanced benefits across stakeholders. Research Implications: This research underscores the need for higher education institutions to adopt AI responsibly, balancing its potential to enhance governance and decision-making with rigorous ethical standards, especially in data privacy and equity. It calls on policymakers and administrators to develop frameworks that ensure AI-driven processes remain transparent, inclusive, and aligned with educational values. Originality/Value: The originality of this research lies in its focus on how AI specifically transforms governance in higher education institutions, going beyond general applications of AI in education to address ethical, operational, and decision-making challenges unique to institutional governance. It provides a nuanced perspective on balancing innovation with responsibility in an academic setting.
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