This editorial discusses recent advancements in artificial intelligence (AI) applications in higher education (HE). It highlights the growing interest in AI's educational potential, despite the limited understanding of its actual impact on HE institutions and participants. The editorial reviews the development of AI in HE since a 2019 systematic review, noting a significant increase in AIEd research publications. The special issue aims to explore the real impacts of AI on HE, including its effects on institutions, learning and teaching, and various stakeholders. The articles in this issue address the benefits and challenges of AI in education, such as personalized learning, ethical concerns, curriculum development, and infrastructural issues. They also discuss the need for interdisciplinary research and longitudinal studies to address research gaps. The articles highlight the influence of generative AI on institutional policies, the impact of ChatGPT on students' programming behaviors, and the effects of human- versus AI-generated feedback on students' writing. Additionally, they examine the relationship between students' self-reported use of generative AI and their academic performance, as well as the importance of developing AI competencies in students. The editorial concludes that while AI research in HE is growing, it still focuses primarily on students at the micro level, with less attention to system, organizational, and administrative levels. The editorial emphasizes the need for further research to understand the broader implications of AI in HE.This editorial discusses recent advancements in artificial intelligence (AI) applications in higher education (HE). It highlights the growing interest in AI's educational potential, despite the limited understanding of its actual impact on HE institutions and participants. The editorial reviews the development of AI in HE since a 2019 systematic review, noting a significant increase in AIEd research publications. The special issue aims to explore the real impacts of AI on HE, including its effects on institutions, learning and teaching, and various stakeholders. The articles in this issue address the benefits and challenges of AI in education, such as personalized learning, ethical concerns, curriculum development, and infrastructural issues. They also discuss the need for interdisciplinary research and longitudinal studies to address research gaps. The articles highlight the influence of generative AI on institutional policies, the impact of ChatGPT on students' programming behaviors, and the effects of human- versus AI-generated feedback on students' writing. Additionally, they examine the relationship between students' self-reported use of generative AI and their academic performance, as well as the importance of developing AI competencies in students. The editorial concludes that while AI research in HE is growing, it still focuses primarily on students at the micro level, with less attention to system, organizational, and administrative levels. The editorial emphasizes the need for further research to understand the broader implications of AI in HE.