Abstract:   AI is reviewed for the utilization in the higher education where literature is available for the critical evaluation of the concept. The decision-making can be privileged with ethical leadership to understand the use of AI as a catalyst in development of country. The study aims to review the leadership challenges in the age of AI with expert insights on ethical governance within higher education institutions of Karachi in Pakistan. The study adopts primary quantitative method when the data is evaluated with the help of Smart PLS and supported a set of 150 samples. Results are derived based on Smart PLS SEM that is helpful to support the analysis and justify the hypotheses. This is ideal in revealing the results using deductive approach and positivism philosophy. The results are justified, three hypotheses are approved, and one is partially approved. Major leadership challenges are data privacy, ethical issues, and cyber concerns. AI adoption is offering a significant impact on the leadership challenge handling and when the leadership challenges are acting as a moderating agent then surely it is leading to the better performance of organization like higher education. The leadership roles can be aligned with the trainings provided to the leaders to apply AI in their routine activities and manage professional roles. Trainings and support of learning environment can be helpful to align leadership roles and meet challenges.

Keywords:   Leadership Challenges, AI, Expert Insights, Ethical Governance, Higher Education Institutions, Karachi

Publisher:   ILMA UNIVERSITY

Published:   17 July 2026

Issue:   Issue 1 (2026-07-17) : Volume 22

E-ISSN:   2409-6520

P-ISSN:   2414-8393