Purpose: This paper examines how the adoption of artificial intelligence (AI) within a structured change management approach fosters an optimal employee experience and operational efficacy in higher education institutions (HEIs). The focus is on the University of Technology and Applied Science (UTAS), Oman, where AI implementation within a traditional management framework optimizes learning, administrative tasks, and collaborative work environments. Furthermore, the approach explores how change management strategies overcome resistance, demystify AI, and establish an innovative culture aligned to Sustainable Development Goal (SDG) 4 and 9, respectively, seeking sustainable industrialization and inclusive quality education. Research/design/methodology/approach: The study uses a qualitative approach and interviews with UTAS faculty, administrative staff, and IT staff to capture employee perspectives on AI adoption. Thematic analysis was used to identify major challenges, ascertain the effect of AI integration, and explain change management strategies by triangulating the findings with institutional reports and the most recently published literature. Findings: The findings indicate that technology could bring about pronounced improvements to operational efficiency by promoting the automation of administrative processes, personalized learning, and collaboration. Further challenges in terms of employee fears regarding job security and lack of training could be addressed only through a structured change-management process. Effective leadership, targeted upskilling, and clear communication were found to be critical drivers for engaging staff toward the successful rollout of AI. Practical implications: This study is expected to help higher educational institutions leverage AI to improve effectiveness and employee experience. It proved particularly relevant for higher educational institutions in developing regions; it outlines the approach to employ AI strategically within an inclusive change management framework, thereby attaining educational and operational sustainability.