This study explores the awareness, usage and perceptions of Artificial Intelligence (AI) tools among undergraduate and postgraduate students in Jalgaon city. As AI continues to reshape various sectors, its integration into education offers opportunities in enhanced personalization, efficiency and innovation in learning processes. The research aims to access students’ familiarity with AI tools, identify commonly used applications, understand their usage purposes and uncover any concerns hindering the broad adoption. The primary data was collected from a sample of 405 students using questionnaire method and analyzed through percentage-based method. The findings reveal that while majority of the students are somewhat familiar with AI tools particularly-ChatGPT- their usage remains infrequent. While most students use AI tools for tasks like notes searching and assignment writing, yet express concerns over information quality, over-dependence and privacy. Open ended responses highlight a need for more user-friendly features, institutional support and AI integration across curricula. The study concludes by emphasizing the role of higher education institutions in promoting responsible AI use through training, resource allocation and curriculum innovation to enhance academic outcomes.