The adoption of Artificial Intelligence (AI) in education and specifically in higher education proven to have a positive impact on learning outcomes, transform managerial and administrative roles, and enhance the overall performance of Higher Education Institutions (HEIs). AI adoption is in alignment with 2030 Vision, as one of its goals is to enhance the educational systems in Saudi Arabia. Although it has many benefits, it might face challenges, for example the high cost of implementation, readiness of the faculty members as well as ethical issues that might make it more complex to adopt AI in HEIs. This research examines the influence of AI adoption on students as well as the faculty and administration. It will explore the role AI plays in student engagement, performance and operational efficiency. The study will also shed light on barriers to successful AI implementation. This study is considered as a roadmap for successful AI implementation that supports Vision 2030 agenda through strategic alignment theories and technology acceptance models.