In today’s digital-driven education system, Artificial Intelligence (AI) has become a significant tool in enhancing learning outcomes among higher education students. However, the effectiveness of AI tools depends on students’ awareness, usage, and perception of these technologies. This study examines how AI-based learning tools influence academic performance, understanding, and skill development, while also identifying challenges such as digital divide, overdependence, and data privacy concerns. Using structured data collection and statistical analysis, the research analyses the extent to which AI impacts student learning and engagement in higher education institutions.