In the era of Artificial Intelligence (AI) advancements, particularly conversational tools like ChatGPT and virtual assistants, higher education has improved more, especially in terms of qualifications such as Information Technology (IT) and Computer Science (CS). This study critically evaluates how AI influences curriculum offerings and pedagogical and assessment strategies in those disciplines. Even though AI can support student learning, complete complex code, and help with theoretical questions, it also presents concerns regarding academic integrity and the validity of traditional assessment methods. Through qualitative methodology, the study has synthesized insights from existing literature and analyzed a publicly available dataset relevant to student performance, assessment types, and AI usage patterns. Key findings reveal a misalignment between genuine understanding and student outputs in an AI-assisted context, presenting questions about the effectiveness of the current norm of educational practices. To Respond, the TH!NK-TRACE-CRAFT Framework is proposed to provide a practical model for designing AI-integrated curricula that might support critical thinking, competency-based assessments, and ethical use of AI. This framework encourages a pedagogical shift, such as teaching AI literacy through instructions, reflective student engagement, and enhanced assessment integrity using process-focused tasks and oral evaluations. It also highlights the need for faculty training and institutional policy in managing the use of AI responsibly, to ensure that educators are fully equipped to adapt to the changes surrounding the use of technology in education. This study contributes to the changing discourse on AI in higher education by presenting practical guidance for educators, curriculum designers, and policymakers to maintain academic standards.