While artificial intelligence (AI) is changing education around the world, higher education institutions in developing countries face challenges to their adoption of AI-enabled learning. Limited digital infrastructure, varying levels of technological literacy, and socio-economic disparities may impact the readiness of higher education institutions to engage effectively with AI-powered tools. This study examines higher education institution readiness within developing countries for AI-enabled teaching and learning. The outcome is a framework for higher education institutions to be AI ready and ethically integrate AI. For this purpose, a systematic literature review of publications from 2019 to 2025 was done to uncover the key themes, gaps, and opportunities to enable higher education institutions to ethically integrate AI. The results comprised a range of components related to AI readiness. These include technology infrastructure, professional academic development, curriculum redesign, ethical paradigm, and policy implementation. The proposed framework highlights the points to note for stakeholder collaboration, and ongoing evaluation and review. The outcome will be a roadmap for higher education institutions in developing countries to integrate AI innovation in teaching and learning in a responsible, ethical and sustainable manner. Through exploring these challenges and by favoring an ethical integration of AI in higher education institutions, developing nations will be in a better position to gain from the transformational potentials of AI to improve the educational outcomes, promote an increasing level of innovation and achieve inclusive development. The original contribution of the framework is that it provides a holistic and context specific consideration of the realities unique to developing countries.