Artificial Intelligence (AI) holds transformative potential for Bangladeshi higher education, offering solutions to persistent challenges such as outdated curricula, inadequate infrastructure, and limited access to resources. This study examines the current state of AI adoption in Bangladeshi universities, explores its future potential, and identifies key challenges that hinder its integration and implementation. Using a mixed-methods approach, the research incorporates surveys, interviews, and document analysis to assess the impact of AI on teaching, learning, and administrative processes. Findings reveal that while private universities such as BRAC University have initiated AI-driven learning tools, public institutions struggle with infrastructural limitations, insufficient funding, and a lack of trained educators. Additionally, limited internet penetration, particularly in rural areas, and the absence of a comprehensive national AI strategy exacerbate these challenges. Despite these obstacles, AI has the potential to revolutionise higher education in Bangladesh by enabling personalised learning, bridging urban-rural disparities, and preparing students for AI-driven job markets. The study emphasises the significance of policy interventions, capacity-building programs, and strategic investments in overcoming these barriers. By providing evidence-based recommendations, this research contributes to the discourse on the equitable and sustainable implementation of AI in Bangladeshi higher education, serving as a model for other developing nations facing similar challenges.