Artificial Intelligence (AI) has emerged as a transformative technology in higher education, offering new opportunities to enhance teaching, learning, assessment, research, and academic activities. This study examines the awareness and utilisation of AI tools among faculty members and identifies their perceived benefits, challenges, and impact on teaching and learning effectiveness. The study adopts a descriptive and analytical research design and collects primary data from 100 faculty members selected through simple random sampling. Data are collected using a structured questionnaire and analysed through simple percentage analysis, Chi-square test, and regression analysis. The findings indicate that faculty members recognise the potential of AI to improve teaching efficiency, content preparation, personalised learning, assessment, and academic productivity. The Chi-square analysis reveals significant associations between AI utilisation and selected demographic and institutional factors, particularly AI training. Regression analysis demonstrates a positive and significant influence of AI utilisation on perceived teaching and learning effectiveness. However, concerns related to academic integrity, misinformation, privacy, ethical use, and inadequate training remain important challenges. The study concludes that systematic AI training, institutional support, and appropriate ethical guidelines are essential for effective and responsible AI integration in higher education.