Extensive Research in artificial intelligence (AI) and advancement in technology focused on improving the decision-making capabilities of a system/computer and thereby fast transactions. This research studied the implementation of AI in Higher Education Institutions and implementation of new systems to achieve corporate strategies. The objectives of this research aimed to examine the efficiency of current adopted AI technologies in relation to HEIs' educational activity, to identify students' and HEIs staff's perceptions and views on the introduction of AI in their academic activity, to investigate AI's impact on planning, implementing and improving HEIs academic activity and to recommend various remedial actions to overcome challenges faced by HEIs in implementing AI procedures. AI is an emerging technology which has evolved in the form of Machine Learning, Natural Learning Processing, Human-Machine Interaction etc. Initially AI has been widely adapted in the corporate sector and recently in Higher Education. The main objective of Higher Education Institutions is to experiment with technology and reap the benefits from the new system. However, it is marginal because there is still a long way to go for AI in the context of teaching-learning process and replacing an instructor with a machine/robot. This research tried to determine the current status of AI in the Higher Education sector in the Sultanate of Oman, studied opportunities associated with it and explored challenges. This research also addressed the community experts' perspective on AI, difficulties in accepting and training needed to faculty members. To achieve this, a survey was conducted using Monkey Survey on Higher Education Institutions in Oman by involving information technology staff and faculty to understand their viewpoints on opportunities and challenges associated with implementation of new AI systems in higher education. Data was analyzed using weighted average. Also, this research studied local market readiness to adapt AI in education, gave reasonable suggestions to grab potential opportunities and assessed possible solutions for the growth in Higher Education Institutions in the Sultanate of Oman.