The rapid advancement of Artificial Intelligence (AI) in higher learning institutions has added increasing pace to the digital transformation in institutions all over the world. However, the current research is heavyweight on technological equipment and estimates of the learning, and algorithmic invention, but the scholars are saying little attention to strategic alignment of policy and/or institutional preparedness. The fragmentation shows a research gap which is relevant to the critical research in order to comprehend how universities accommodate national AI policy, institutional structure and capacity to bring about sustainable change. Closing this divide, this paper is a narrative PRISMA-based systematic review, which will help summarize the available literature on the subject of AI adoption and policy congruence in higher education. The analysis will be conducted on the basis of the reports listed in Scopus, the publications listed in Web of Science, the reports on the institutional policies, and the studies devoted to the technology research in higher education published 2015-2025. After the systematic identification, duplicates have been removed, abstracts were filtered, and filtering of the full-text eligibility was completed, 82 studies were eligible to be subjected to thematic synthesis. Four core domains are identified with the assistance of the thematic categorization and conceptual mapping to plan the analysis: AI implementation strategies, institutional readiness factors, strategic policy alignment mechanisms, and educational and organizational outcomes. Findings indicate that the national readiness to change including the level of technological advancement, compatibility with the national change agenda and institutional strategy, governance and loyalty are not projected to facilitate successful AI-based change. Lack of proper preparation and mis-fitting of policies is a tremendous constraint to the outcome of the transformation. The study relates to t