Artificial Intelligence (AI) has been exploding and is likely to change all aspects of human life. In education, AI is creating new teaching and learning methods that are being tested in many conditions and in many countries with different levels of development leading to different results. This article is aimed at analyzing opportunities, challenges and future impacts of AI on teaching and learning at universities around the world in general. Firstly, the positive changes that AI brings to education are analyzed in the paper. Next, the article presents challenges and difficulties encountered in applying AI in higher education as well as proposing some major solutions to those difficulties.