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Artificial Intelligence (AI) has emerged as a transformative force in education,offering unprecedented opportunities for personalization, inclusivity, and administrative efficiency.Yet, the adoption of AI in educational contexts remains contested, particularly in developingcountries where infrastructural limitations, ethical dilemmas, and policy gaps persist. This studyexamines the interplay between AI’s potential, challenges, and ethical concerns in shapingattitudes toward adoption in higher education. Guided by Diffusion of Innovations Theory andEthical AI perspectives, a mixed-methods design was employed. Quantitative data were collectedfrom 270 respondents (students, lecturers, and administrators) through structured questionnaires,while 20 in-depth interviews provided qualitative insights. Results reveal that the perceivedpotential of AI strongly and positively predicts adoption attitudes, whereas infrastructuralchallenges, algorithmic bias, and data privacy concerns negatively influence acceptance. Ethicalconcerns, particularly those related to fairness, accountability, and transparency, emerged assignificant inhibitors. Interestingly, demographic factors such as gender and role were notsignificant predictors, suggesting that systemic barriers may outweigh individual differences inshaping adoption patterns. The findings underscore the need for holistic frameworks that strike abalance between innovation, equity, ethics, and institutional readiness. Practical implicationsinclude strengthening digital infrastructure, building educator capacity, and establishing robustethical governance mechanisms to ensure the responsible adoption of AI in education.