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Novel educational technologies have revolutionized the methods of teaching and learning transactions; recently, with advancements in artificial intelligence, higher education at the university level has begun to adopt advanced technologies. This conceptual descriptive study aims to find out the effectiveness of Artificial Intelligence in the teaching-learning transaction process at the university level. It describes the effect of Artificial Intelligence on students learning and cognitive development. This study intends to explain the role of artificial intelligence in the current and future scenarios of education in the world. The effective application of artificial intelligence methods is considered a means of improving the quality of teaching and learning. However, the challenge of integrating artificial intelligence in educational institutions is addressed. Moreover, the dimension of the feature of adopting artificial intelligence in terms of students' support, teaching, learning, transaction, and administration are discussed.