The rapid integration of artificial intelligence (AI) tools (e.g. Chat GPT) into higher education raises questions about their influence on traditional academic skills. This mixed-methods study examines AI’s impact on reading habits and knowledge retention among 350 undergraduate students in Cross River State, Nigeria. Four objectives guided the research: (1) assessing AI’s effect on knowledge retention; (2) evaluating AI’s impact on reading habits; (3) determining the extent of AI tool usage; and (4) examining whether AI is perceived as a distraction. Quantitative data (survey) and qualitative data (focus groups) were collected. Results show a high adoption rate (64%) of AI tools for academic purposes. However, 58% of students reported that AI use negatively affected their retention (÷² (1, N=350) =14.32, p<.001, ö=.20), and 67% reported decreased reading time due to AI summaries (÷² (1, N=350) =39.78, p<.001, ö=.34). Qualitative findings reveal shifts from deep reading to skimming and dependence on instant answers. These findings echo global concerns that AI can undermine deep learning. The study concludes that while AI offers efficiency, its unguided use poses risks to foundational skills. We recommend clear ethical policies and AI literacy programs to ensure these tools complement rather than compromise learning.