This study examines the disruptive and transformative implications of Generative Artificial Intelligence (GenAI) in contemporary higher education. It critically evaluates how GenAI technologies can enable personalized learning pathways, curriculum co-creation, and research innovation, offering unprecedented opportunities to enhance teaching and academic productivity. Simultaneously, it addresses critical challenges surrounding data privacy, academic integrity, intellectual authorship, and algorithmic bias, which threaten to undermine trust in educational systems. Employing a comparative case study methodology across selected Gulf Cooperation Council (GCC) and Western universities, the paper identifies institutional gaps and best practices in the governance of GenAI. Based on these insights, it proposes a comprehensive AI governance framework that incorporates ethical AI principles, institutional policy alignment, and digital literacy development. The study offers actionable policy recommendations aimed at fostering equitable, transparent, and responsible AI integration within academic ecosystems.