Artificial intelligence (AI) is rapidly transforming higher education by enhancing teaching methodologies, administrative efficiencies, and research capabilities, with profound implications for sustainability. This review analyzes international and national policy frameworks, including UNESCO’s ethical guidelines and competency frameworks (UNESCO, 2021, 2024), the European Union’s AI Act (Regulation (EU) 2024/1689) and EU Digital Education Action Plan (2021-2027), key U.S. initiatives like the U.S. Department of Education’s AI guidance and Executive Order (The White House, 2025), China’s strategic digitalization guidelines (2025), and AI education policies and recommendations of the Ministry of Education and Science of Ukraine (2025). These documents reveal diverse approaches, from human-centered ethics to regulation-driven innovation and state-led integration. Opportunities include personalized learning, resource optimization, and global collaboration, while risks encompass ethical concerns, inequity, academic integrity issues, and overreliance. Generally, recommendations emphasize harmonizing policies, increasing AI literacy, ensuring equitable access, and safeguarding human-centered pedagogy to maximize AI’s potential in sustainable higher education, particularly in contexts of Ukraine’s post-war recovery.