The quality of education is greatly improved using artificial intelligence (AI) technologies and tools. Many organizations across the globe have incorporated the use of AI tools to enhance their teaching methods and prepare themselves against pandemics and other disruptions. On the other hand, practitioners do not completely understand the factors that influence the application of these systems. Moreover, little research has examined the factors and challenges that facilitate the successful integration of artificial intelligence in higher education institutions in the Sultanate of Oman. As a result, there is a gap that this research identifies, defines, and assesses the key factors associated with AI integration in higher education. In this paper, we conducted semi-structured interviews with eight experts and extracted four factors. From these factors and challenges, we proposed a conceptual framework that was classified using the Technological, Organizational, and Environmental (TOE) framework and the Technology Acceptance Model (TAM) model. We used NVIVO software after the categorization and involved eight experts in gathering the relevant data. The major findings were four factors and challenges: data readiness, educational transformation, financial readiness, and ethical anxiety. The study proposed a conceptual framework to investigate relationships between the factors and challenges and developed propositions for each. These propositions are crucial in understanding how these relationships impact the adoption of AI tools in the higher education sector.