Generative AI in Higher Education: A Systematic Review of Opportunities, Challenges, and Pedagogical Innovations (2022–2025)

The rapid rise of Generative AI (GenAI) tools, particularly following the release of ChatGPT in November 2022, has significantly transformed higher education landscapes worldwide. This systematic literature review examines the integration of GenAI in higher education from 2022 to 2025, synthesizing empirical evidence across 125 peer-reviewed studies. Following PRISMA 2020 guidelines, we searched multiple databases, including Scopus, Web of Science, ERIC, IEEE, and Google Scholar, to address five research questions concerning applications, opportunities, challenges, pedagogical innovations, and future directions. Our findings reveal exponential growth in GenAI adoption, with student usage rates reaching 92% in 2025. Four primary application domains emerged: automated feedback and assessment, personalised learning support, critical skill development, and research assistance. While GenAI offers substantial benefits, including enhanced learning efficiency, accessibility, and personalisation, significant challenges persist regarding academic integrity, algorithmic bias, hallucination rates, faculty readiness gaps, and digital equity concerns. Pedagogical innovations include the development of AI literacy frameworks, revised assessment designs, and theoretical models such as AI-TPACK and GenAI-integrated pedagogies. We propose an integrated framework for responsible GenAI implementation emphasising ethical governance, contextual adaptation, and collaborative human-AI partnerships. This review contributes to educational research by providing a comprehensive synthesis of the current state, identifying critical gaps, and offering actionable recommendations for educators, policymakers, and researchers navigating the GenAI revolution in higher education.