This study examined the effect of artificial intelligence (AI) adoption on academic performance among polytechnic students in Nigeria, with emphasis on the role of digital literacy. The increasing application of AI technologies, including generative AI tools, intelligent tutoring systems, adaptive learning platforms, and automated academic support systems, has introduced new possibilities for improving teaching and learning outcomes. However, challenges relating to digital competence, ethical concerns, academic integrity, inadequate infrastructure, and limited empirical evidence within Nigerian polytechnic education necessitate further investigation. The study was anchored on the Technology Acceptance Model (TAM), which explains technology adoption based on users’ perceptions of usefulness and ease of use. The study extended the model by incorporating digital literacy as an important factor influencing students’ ability to effectively utilize AI technologies for academic purposes. A quantitative research design was adopted, using a cross-sectional survey method. Data were collected from polytechnic students through a structured questionnaire, while descriptive statistics, correlation analysis, and multiple regression analysis were employed for data analysis. The study concludes that artificial intelligence adoption and digital literacy are important factors in enhancing academic performance among polytechnic students. It recommends that polytechnic institutions should strengthen AI and digital literacy programmes, improve technological infrastructure, train lecturers and students on responsible AI utilization, and establish institutional guidelines that encourage ethical and effective integration of artificial intelligence into teaching and learning.