This work offers an analysis of Artificial Intelligence's (AI) impact on higher education across Latin America, a subject that has received limited academic attention despite its far-reaching implications. The research is particularly significant as it examines how a region historically challenged by resource limitations is leveraging AI to transform its educational landscape. Accelerated by the launch of large language models like ChatGPT in late 2022, this transformation is improving education quality in pedagogy, research, and management. The study reveals that AI could increase the region's GDP by 5.4% by 2030, with 25-38% of jobs exposed to generative AI. Uniquely, it highlights how Latin American universities are developing innovative AI strategies despite infrastructure constraints, focusing on reducing the digital divide and integrating indigenous knowledge. The research showcases pioneering initiatives like Pontificia Universidad Católica de Chile's ConectIA program and Tecnológico de Monterrey's comprehensive AI integration plans. By examining cross-border cooperation and collaborative efforts addressing social challenges, this study provides invaluable insights into how Latin American institutions are adapting AI to regional needs. This approach could set new global standards for inclusive and ethical technological advancement in education. The academic rigor of this analysis, combined with its focus on a traditionally underrepresented region in AI studies, makes it a crucial contribution to understanding the global landscape of AI in higher education.