In this chapter, we review the development of artificial intelligence in education in general and higher education in particular. We then describe a range of use cases of artificial intelligence in higher education and explore the efficacy of those applications on various constituents, including students, faculty, researchers, administrators, and staff members in colleges and universities. While describing various applications, we raise issues related to the challenges of artificial intelligence in higher education such as equity, security, and confidentiality, among other matters. We also document existing policy development and related initiatives from different levels (e.g., international, national, state, and institutional) regarding artificial intelligence. Finally, we explore future directions for research and policy considerations on artificial intelligence in higher education. As a rapidly changing area, there is an urgent need to build evidence base on the impacts of artificial intelligence on all constituents in higher education through rigorous research to guide policy and practice.