This article explores the implications of Generative AI in higher education institutions, focusing on its impact on academic integrity and educational policy. The study utilises qualitative methods and desk-based research to investigate the adoption of Generative Pre-Trained Transformer and similar programs within academic settings. While some institutions have implemented bans on Generative AI due to concerns about plagiarism and ethical implications, others have embraced its potential to enhance educational practices under ethical guidelines. However, such prohibitions may overlook the advantages of Generative AI and ignore students' inevitable engagement with technology. The article addresses these challenges by proposing guiding principles for the ethical and efficient application of Generative AI in UK universities, particularly in the realms of employability, teaching, and learning. The article is structured into three main sections: a review of existing literature on Generative AI, an exploration of its benefits and challenges, formulation of guiding principles for its implementation, and recommendations for future research and practical implementation. Through this analysis, the article aims to contribute to the ongoing discourse surrounding Generative AI in higher education, providing insights into its implications for educational policy and practice.