The rapid proliferation of Artificial Intelligence (AI)-based writing tools including ChatGPT, Grammarly, QuillBot, and Microsoft Copilot has introduced both transformative opportunities and profound ethical challenges in higher education globally. In Nigeria, the growing adoption of these tools among undergraduate students raises urgent questions about their net effects on academic achievement, ethical conduct, and skills development, particularly in discipline like Social Studies Education. A descriptive survey research design was adopted. The study population comprised all Social Studies undergraduate students at the Department of Social Studies Education, AFUED. A purposive sample of 200 students was drawn, consisting of 50 students from each of the four levels: 100 Level, 200 Level, 300 Level, and 400 Level. Data were collected using a validated, researcher-developed instrument titled the AI-Based Writing Tools in Education Questionnaire (AIBWTEQ), comprising 40 items across four subscales. Content validity was confirmed by three experts, and Cronbach’s Alpha reliability coefficient was r = 0.87. Data were analysed using descriptive statistics (means and standard deviations), one-way Analysis of Variance (ANOVA), and Pearson Product-Moment Correlation Coefficient (PPMCC). Findings revealed that: (i) AI-based writing tools had a moderate positive effect on students’ academic achievement (grand mean = 2.89); (ii) significant ethical concerns including plagiarism, academic dishonesty, and over-reliance were prevalent, with 400 Level students exhibiting greater ethical awareness than 100 Level students; (iii) AI tools moderately enhanced specific skills such as grammar correction and information retrieval but demonstrated a negative relationship with critical thinking and original writing development; and (iv) there was a statistically significant difference in students’ perceptions of AI effects across academic levels [F(3, 196) = 6.43, p = .000]. The study recommended the development of clear institutional AI usage policies, integration of AI literacy modules into the Social Studies curriculum, and a balanced pedagogical approach that harnesses AI capabilities while safeguarding original intellectual development.