The advent of generative artificial intelligence (GenAI) represents a watershed moment for global education, simultaneously offering unprecedented opportunities for pedagogical enhancement and posing profound challenges to established academic norms. This paper presents a comprehensive analysis of the multifaceted impact of GenAI on educational theory and practice. Drawing upon a critical review of recent literature, this research examines the transformative potential of GenAI in personalizing learning, augmenting teacher capacity, and fostering higher-order cognitive skills, while critically assessing the significant risks related to academic integrity, algorithmic bias, the erosion of critical thinking, and the exacerbation of the digital divide. The study adopts a conceptual framework that synthesizes current findings to argue for a paradigm shift from reactive risk-mitigation to proactive, human-centred pedagogical integration. Findings indicate that while general-purpose GenAI tools can enhance surface-level performance, they often fail to produce genuine learning gains and may foster metacognitive laziness. Conversely, pedagogically designed applications hold considerable promise. The discussion emphasizes the necessity of developing comprehensive AI literacy frameworks and relational pedagogies that position GenAI as a collaborative "mind partner" rather than a replacement for human cognition and interaction. The paper concludes with actionable recommendations for educators, policymakers, and institutions to foster an educational ecosystem where AI augments human potential, prioritizes equity, and cultivates the enduring skills necessary for an uncertain future. This research contributes to the ongoing discourse on digital transformation in education, offering a nuanced perspective grounded in both global research and the specific contextual challenges facing developing nations.