This study investigates the interplay between students’ use of artificial intelligence (AI) tools and their levels of digital wiseness, digital competence, and engagement in research activities. It further considers the mediating influence of digital wiseness and competencies, alongside variations across academic status (undergraduate vs. postgraduate) and geographical setting (urban vs. rural). Anchored in a quantitative framework, the study adopted an ex-post facto design, with data gathered from students in different higher education institutions to reflect their experiences with AI technologies, their digital preparedness, and their involvement in research processes. Structural equation modelling (SEM) was applied to evaluate the measurement model and to examine both direct and indirect relationships among the study variables. In addition, multi-group analysis was used to compare patterns across demographic categories. The results show that engagement with AI tools is closely linked to higher levels of digital wiseness and digital competence, which in turn shape behavioural, cognitive, and emotional dimensions of research engagement. While digital wiseness positively influenced behavioural and emotional engagement, it showed a negative association with cognitive engagement. Digital competence displayed context-specific effects, with stronger relationships observed among postgraduate and rural students. Overall, the findings highlight the need for inclusive, context-driven strategies to strengthen students’ digital readiness and research participation. Implications were discussed