This paper explores recent advancements and implications of artificial intelligence (AI) technology, with a specific focus on Large Language Models (LLMs) like ChatGPT 3.5, within the realm of higher education. Through a comprehensive review of the academic literature, this paper highlights the unprecedented growth of these models and their widereaching impact across various sectors. The discussion sheds light on the complex issues and potential benefits presented by LLMs, providing a comprehensive overview of the field's current state. In the context of higher education, the paper explores the challenges and opportunities posed by LLMs. These include issues related to educational assessment, potential threats to academic integrity, privacy concerns, the propagation of misinformation, Equity, Diversity, and Inclusion (EDI) aspects, copyright concerns and inherent biases within the models. While these challenges are multifaceted and significant, the paper emphasises the availability of strategies to address them effectively and facilitate the successful adoption of LLMs in educational settings. Furthermore, the paper recognises the potential opportunities to transform higher education. It emphasises the need to update assessment policies, develop guidelines for staff and students, scaffold AI skills development, and find ways to leverage technology in the classroom. By proactively pursuing these steps, higher education institutions (HEIs) can harness the full potential of LLMs while managing their adoption responsibly. In conclusion, the paper urges HEIs to allocate appropriate resources to handle the adoption of LLMs effectively. This includes ensuring staff AI readiness and taking steps to modify their study programmes to align with the evolving educational landscape influenced by emerging technologies.