The launch of the chatbot ChatGPT in November of 2022 has sparked a fierce debate on how AI tools will affect future education. Currently, there have been multiple articles about how universities and educators do not yet have an action plan on how to respond to the consequences of the launch of the chatbot. The technology behind ChatGPT is generative AI and is anticipated to be the next big digital disruption. Generative AI and its effects on higher education is still unexplored territory. In this thesis we aim to answer the following research question: how can generative AI be managed as a digital disruption in higher education? We conducted a qualitative case study at a university in Sweden, where the participants were educators from different departments. The three main themes discussed in this thesis are: disruptive effects of generative AI; three elements of managing digital disruption; emerging challenges and opportunities. We contribute to existing research by providing a model on how the digital disruption caused by generative AI manifests in higher education and provide suggestions on how to manage it. Further, we suggest that future research add students’ perspective to the model, since this was not covered in this thesis.