The rapid advancement of traditional and generative artificial intelligence (AI) technologies is reforming the contemporary approach to teaching and learning in higher education. Educators and learners are already tapping into the potential of AI-powered assistive tools that allow them to benefit from this emerging transformative process. However, concerns regarding the best practices and ethical considerations in the adoption of AI are prompting education administrators, policymakers, and other stakeholders to assess the impact of these educational technologies on the principles of equitable access, provision of well-defined guidelines and data privacy. This chapter opens with a brief on generative AI (Gen-AI) as educational technology, the opportunities it offers to teachers in pedagogical innovations and its benefits to students in enriching their learning experiences. The challenges associated with the employment of Gen-AI for teaching, learning and assessment purposes in the absence of guiding principles, clear academic regulations and ethical limits are highlighted next. The chapter further focuses on illuminating the line of demarcation between reasonable use and exploitation of Gen-AI within the confines of educational merits. Ethical considerations pertinent to the process of teaching and learning in the Gen-AI edu-sphere, including student data privacy and surveillance issues, fair, autonomous, and equal access, excessive use of Gen-AI, bias algorithms that perpetuate inequality, quality vetting of AI-generated contents and assessments, and deterrence of plagiarism are discussed.