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This qualitative study explores how graduate instructors and faculty in higher education integrate generative AI (genAI) in teaching, while navigating ethical considerations. Drawing on the Technological Pedagogical Content Knowledge (TPACK) and Fairness, Accountability, Transparency, and Ethics (FATE) frameworks, semi-structured interviews were conducted with 10 graduate instructors and faculty members across education-related disciplines. We found instructors strategically integrate genAI across their teaching cycles. They viewed genAI as a practical but imperfect assistant in teaching. The advancement of genAI has transformed the instructional design in higher education, particularly in assessment. There remains an unequal adoption of AI and ethical considerations among instructors.