Artificial Intelligence (AI) is transforming higher education by influencing teaching, learning, assessment, and administration. While offering benefits such as efficiency, personalization, and accessibility, AI also raises ethical concerns, including academic integrity, data privacy, and accountability. This study examines faculty and student awareness, perceptions, and attitudes toward responsible AI use in selected colleges in Thane district. Findings emphasize the need for ethical frameworks, institutional policies, and awareness programs to ensure AI serves as a supportive academic tool, enhancing learning without replacing human intelligence or originality.