Indian higher education system is adaptive in nature. All branches of higher education in India have shown resilience to changing global scenario and has brought new knowledge into education to make Indian students competitive in global arena. With the introduction of NEP 2020 use of digital technology in education has become essential for several reasons. Incorporating artificial intelligence (AI) tools in higher education provides ample opportunities and also challenges in the context of India education system. With the rapid development of AI tools, universities & colleges in India are increasingly adopting AI-driven systems for a range of academic and administrative functions. These include personalized learning experiences, automated grading, virtual teaching assistants, and predictive analytics to enhance student performance and institutional management. AI also offers potential for transforming curriculum design, improving accessibility for differently-abled students, and addressing the diverse learning needs of India's vast student population.However, the use of artificial intelligence in Indian higher education faces several challenges which include inadequate infrastructure, limited digital literacy among faculty and students, concerns over data secrecy and security, and the need for substantial investment in artificial intelligence technologies and training. Additionally, there is a risk of deepening educational inequalities, as institutions in urban areas may have greater access to AI tools compared to those in rural or remote regions require careful consideration.This paper explores the opportunities/ scope and challenges in using artificial intelligence tools in higher education and also identify the purposes of using of using AI tools in higher education. Recommendations and analysis will help to make proper policy guidance for use of AI tools in higher education in India.Keywords: Artificial Intelligence tools, higher education, Curriculum design, AI driven system