Introduction. This study examines the development and diffusion of generative AI policies in UK universities, particularly in relation to the Russell Group principles. It explores factors influencing policy adaptation, institutional resource disparities, and challenges and opportunities in AI integration. 

Method. The research employs a document analysis approach, reviewing publicly available policy documents, university websites, and reports. It categorizes institutions using Boliver’s(2015) clustering and applies theoretical frameworks such as institutional theory, policy diffusion, and punctuated equilibrium. 

Results. Russell Group universities lead in AI policy development, emphasizing AI literacy, though support varies. Non-Russell Group institutions show diverse responses, influenced by resource availability. Policy diffusion is evident, with some universities adopting Russell Group approaches. Challenges include academic integrity, equitable AI access, and adapting assessment methods. University libraries play a growing role in AI literacy. 

Conclusions. Universities should adopt a collaborative approach to policy development, involving multiple stakeholders. Addressing resource disparities is essential to prevent widening inequalities. Institutions must rethink assessment strategies and enhance AI literacy training, with libraries playing a key role in ethical AI use.