Generative AI and Higher Education: Trends, Challenges, and Future Directions from a Systematic Literature Review

(1) Background: The development of generative artificial intelligence (GAI) is transforming higher education. This systematic literature review synthesizes recent empirical studies on the use of GAI, focusing on its impact on teaching, learning, and institutional practices. (2) Methods: Following PRISMA guidelines, a comprehensive search strategy was employed to locate scientific articles on GAI in higher education published by Scopus and Web of Science between January 2023 and January 2024. (3) Results: The search identified 102 articles, with 37 meeting the inclusion criteria. These studies were grouped into three themes: the application of GAI technologies, stakeholder acceptance and perceptions, and specific use situations. (4) Discussion: Key findings include GAI’s versatility and potential use, student acceptance, and educational enhancement. However, challenges such as assessment practices, institutional strategies, and risks to academic integrity were also noted. (5) Conclusions: The findings help identify potential directions for future research, including assessment integrity and pedagogical strategies, ethical considerations and policy development, the impact on teaching and learning processes, the perceptions of students and instructors, technological advancements, and the preparation of future skills and workforce readiness. The study has certain limitations, particularly due to the short time frame and the search criteria, which might have varied if conducted by different researchers.