Generative Artificial Intelligence (GenAI) is rapidly reshaping higher education, driven by advances in natural language processing (NLP) and large language models (LLMs). This paper systematically reviews the applications of GenAI, focusing on virtual teaching assistants (chatbots), personalized learning, and gamification integration. While these technologies create new opportunities to enhance student engagement and learning, they also raise important concerns, such as ethical issues, academic integrity, and cultural adaptability. Based on insights from 57 studies, this systematic literature review examines both the benefits and challenges of integrating GenAI into higher education. It also offers practical recommendations, emphasizing the need for teacher training, infrastructure improvements, and policies that promote fair and equitable access to AI-driven tools.