Artificial Intelligence plays a transformative role in higher education by shaping both intellectual capital and dynamic capabilities. This article examines AI’s impact on human, structural, and relational capital within higher education institutions, emphasizing how AI itself constitutes a unique form of intellectual capital. Investments in AI technologies, staff training, and the integration of AI into institutional processes contribute to the development of AI capital, which enhances knowledge creation and strategic positioning. From the perspective of dynamic capabilities, the adoption of AI necessitates continuous adaptation and learning. Institutions must develop the ability to sense emerging AI-driven opportunities and threats, seize new technological advancements, and reconfigure resources to sustain a competitive advantage. By integrating AI into decision-making, administrative efficiency, and research processes, universities can foster innovation and agility in a rapidly evolving educational landscape. AI-driven value creation emerges from its capacity to enhance personalized learning, streamline institutional workflows, and drive research excellence. As both an enabler and a strategic asset, AI capital strengthens long-term institutional resilience and innovation potential. This study includes a case analysis of a Finnish University of Applied Sciences, illustrating how AI contributes to intellectual capital development and the dynamic capabilities needed to navigate technological transformation.