The rapid expansion of artificial intelligence (AI) is reshaping higher education worldwide, offering new possibilities for instruction, research, and institutional efficiency. As AI tools ranging from adaptive learning systems to generative assistants become increasingly embedded in academic environments, assessing the readiness of educational stakeholders becomes essential to ensure responsible and effective integration. In the Philippines, interest in AI adoption is rising; however, gaps in digital literacy, access to technology, and institutional policies persist, particularly in public higher education institutions. This study examines the AI preparedness of faculty and students at the University of Caloocan City, College of Liberal Arts and Sciences (UCC-CLAS), a local government-funded institution serving diverse learners in the humanities and social sciences.

Using a descriptive-survey design, data were collected from 1,038 respondents to measure AI literacy, attitudes, beliefs, motivation, institutional support, challenges, and recommended solutions. Findings show that faculty generally demonstrate higher AI proficiency than students, though both groups report moderate readiness across all measured dimensions. Respondents express strong agreement on the importance of ethical awareness, critical evaluation of AI outputs, and continuous digital skills development. Challenges identified include data privacy risks, reduced human interaction, overdependence on AI, cost barriers, and the need for professional development. Both faculty and students strongly support solutions such as educator training, improved digital literacy, ethical guidelines, cybersecurity safeguards, and initiatives to bridge the digital divide.

The study establishes a baseline understanding of AI readiness within UCC-CLAS and highlights the need for comprehensive institutional strategies, including policy development, curriculum integration, and capacity-building programs. These findings offer actionable insights for university leaders, curriculum developers, and policymakers aiming to foster responsible, equitable, and future-ready AI integration in Philippine higher education.