Artificial intelligence (AI) tools are rapidly transforming academic practices in higher education, especially through generative platforms and AI-supported writing assistants. University students increasingly use these tools for academic writing, idea generation, summarisation, proofreading, translation, research support, presentation preparation, and clarification of complex concepts. This thematic literature review examines university students' perceptions and use of AI tools for academic activities, with particular attention to implications for critical thinking in Tanzanian higher education. The review synthesises recent peer-reviewed studies, systematic reviews, conference papers, and policy guidance on AI adoption, academic writing, learning productivity, academic integrity, AI literacy, and higher-order thinking in universities. The synthesis shows that students commonly perceive AI tools as useful, convenient, and supportive of academic efficiency, but their use also raises concerns about overdependence, reliability of generated content, plagiarism, weak originality, and reduced independent reasoning. Evidence from Tanzanian higher education indicates growing student engagement with AI tools, particularly for writing assignments, idea generation, research support, and proofreading. However, this adoption is shaped by contextual factors such as affordability, internet access, digital literacy, academic English, limited Swahili integration, lecturer guidance, and unclear institutional policies. The review argues that AI tools do not automatically improve or weaken critical thinking; rather, their influence depends on how students use them and whether universities provide adequate ethical, pedagogical, and policy support. The paper identifies a key gap in Tanzanian scholarship: limited empirical attention has been given to how AI use affects critical thinking competencies such as analysis, evaluation, interpretation, inference, problem-solving, and independent judgment.