Abstract: This research paper explores the ethical application of artificial intelligence (AI) in university curricula, focusing on the challenges and opportunities it presents. The paper is a result of a survey conducted among students and staff at Busitema University to understand the current state of AI usage, identify the benefits and challenges, and how to address the emerging ethical implications. The findings revealed that students are increasingly using AI for various academic tasks, but there is a lack of formal integration and limited awareness among staff. The limitations of AI, such as inaccuracies in its outputs and potential hindrances to deep learning and innovativeness, are also underlined in our findings. The paper therefore calls for structured AI education and policy development within universities to regulate AI use, promote transparency, and address ethical concerns. Specific recommendations include integrating AI into the learning management system, providing AI training for both students and staff; and developing guidelines and standards for responsible AI use. This paper emphasises the need to balance the benefits of AI with ethical considerations so that institutions continue to nurture critical thinking skills even in the era of AI integration into teaching and learning.