Along with the tremendous and rapid developments in the field of technologies, artificial intelligence as a powerful tool has been able to greatly affect the life of mankind in all dimensions. The field of education and learning is not an exception from this rule and artificial intelligence has been able to evolve from the initial idea about education to the final form of education, i.e. evaluation. The evaluation process at all levels and stages is always monitored by researchers to check the effectiveness of the educational process. Meanwhile, knowing the capacities and challenges in the evaluation of our higher education will help in the improvement, management and quality of the evaluation process. Therefore, the current research seeks a systematic review of the capacities and challenges in the evaluation of the higher education system, for this reason, it presents the research conducted from February 2015 to June 2024 about the capacities and challenges of artificial intelligence in the evaluation of higher education. This survey was conducted with the aim of addressing tow key questions: (1) identified capacities and (2) upcoming challenges in the field of artificial intelligence in the evaluation of higher education. A comprehensive search of databases, such as SAGE, Wiley Online Library, and Science Direct, identified 3,281 studies that were narrowed down to a final sample of 30 relevant studies through a rigorous screening process, and the selection of article selection criteria. The findings show several capacities of artificial intelligence, such as personalization of learning, positive effects on student learning, reduction of time in planning and managing professors' work, more objective grading of students, and automation of repetitive tasks. However, the research reviewed in this article also reveals important challenges such as ethical considerations, integration with curricula, inadequate infrastructure, lack of technical knowledge among professors, resistance to change, and