Abstract: Higher education institutions face mounting pressures from enrollment declines, budgetary constraints, and operational complexity while simultaneously confronting the disruptive potential of artificial intelligence. This article examines how colleges and universities can strategically adopt AI technologies to enhance administrative efficiency while maintaining pedagogical integrity and ethical standards. Drawing on organizational change research and documented institutional practices, we analyze the dual challenge facing campus leaders: leveraging AI's operational benefits in admissions, finance, and marketing while addressing faculty concerns about learning outcomes. We present evidence-based frameworks for responsible AI adoption, including governance structures, risk mitigation strategies, assessment approaches, and funding models. The analysis synthesizes insights from institutions actively implementing AI initiatives alongside scholarly research on technology adoption, organizational change, and educational quality assurance. Our findings suggest that successful AI transformation in higher education requires transparent governance, stakeholder engagement, incremental implementation, and continuous evaluation—creating sustainable pathways that honor both operational imperatives and educational mission.