The study proposes a balanced approach and flexible guidelines for incorporating generative artificial intelligence (AI) into university-level teaching and learning processes at both the university-departmental level and within individual academic autonomy. Building on the AI Ecological Education Policy Framework, the guidelines offer a suggestive frame of reference for faculty and students to integrate generative AI into their coursework. Furthermore, feedback from 118 students and 14 academics at a teacher education institution in the Philippines underscores the guidelines' potential benefits, concerns, usefulness, and necessity in their academic undertakings. While the policy may not cover every detail exhaustively, it seeks to provide practical and context-sensitive recommendations for ethical, honest, responsible, and fair use of AI in course development, implementation, and student engagement. Consequently, other higher education institutions in general, and academics in particular, may adopt and/or modify the guidelines to suit their positions, goals, needs, and directions.