The purpose of this research is to examine the impact of Artificial Intelligence (AI) on teaching and learning in higher education in Kosovo. In this study, qualitative and quantitative methods were used to collect and analyze the research results, and the empirical data used in this research are primary and secondary data. For the data collection, 234 responses were provided through an online questionnaire distributed to students and 30 responses were provided through an online questionnaire distributed to professors. Econometric tests used in the study are Frequencies, Correlations, T-tests and Chi-square. According to the research results the use of AI in HEI will have an impact on future learning, but also will help the students to prepare for the labor market. The challenges of the AI use on the students’ part were lack of critical thinking and creativity but they also answered that AI helps in creativity and critical thinking. A paradox like this might suggest that while there are innovative ways to learn, there are also concerns about over-reliance on technology where these creativity capacities might weaken it. Professors stated that lack of transparency and data manipulation are the biggest ethical challenges in the use of AI in HEI. This study provides an overview of the impact of artificial intelligence (AI). It is of particular importance in identifying potential challenges and risks and the need to include training for its use in teaching and learning. The results of this study will also serve as good scientific and empirical evidence for future studies that will contribute to the identification of other challenges and risks in the use of artificial intelligence by higher education students.