Authors - Renato E. Salcedo, Elmar B. Noche Abstract - The rapid proliferation of Artificial Intelligence (AI) in education has prompted growing scholarly and policy interest in how higher education institutions across the Asia-Pacific region are systematically incorporating AI into teaching, learning, research, and governance. This paper presents a systematic review of 68 peer-reviewed studies, institutional policy documents, and government reports published between 2018 and 2024, examining the extent to which AI is being institutionalized within Asia-Pacific higher education systems in alignment with Education for Sustainable Development (ESD) principles. Using the PRISMA framework and a content analysis methodology, this review identifies four dominant institutionalization pathways: curriculum integration, research infrastructure development, policy formalization, and faculty capacity-building. Findings indicate significant heterogeneity across countries, with East Asian economies particularly China, Japan, and South Korea exhibiting more advanced levels of AI policy coherence, while Southeast Asian and Pacific Island nations remain in nascent stages of formal AI institutionalization. Critical barriers include data governance deficits, algorithmic inequity risks, underfunded professional development pipelines, and insufficient alignment between national AI strategies and ESD frameworks. The review concludes with a set of evidence-based recommendations for regional policymakers, university administrators, and international development organizations to accelerate equitable, sustainable AI institutionalization across the Asia-Pacific higher education landscape.