To maximise the benefit and minimise the risks of AI use is higher education, it is important to regulate it by institutional policies. Lack of policies and governance of AI use in higher education can hinder the use of AI tools. The research questions addressed undergraduate university students’ reasons for using AI and the potential consequences that they can face because of this conduct. Qualitative research was chosen for the study, and data were collected through interviews and open-ended online questionnaire from 50 multicultural undergraduate students in the UAE, of which 10 participants were randomly selected for an in-depth interview. Resulting from thematic analysis, the findings suggested that students use AI tools for their efficiency, enhancing critical thinking, and developing writing skills. Others found AI tools costly, robotic, and unreliable. The findings also showed that students face various consequences like failing an assessment, a course, or get expelled from university. The findings potentially contribute to a better understanding of the ways that undergraduate students use AI tools in their learning process, suggesting ways that universities and academic leaders can provide resources and support for students to empower them to use AI in a creative and responsible way that can prepare students for their future roles where the use of AI can be inevitable. Universities can empower students by providing comprehensive support and resources to use AI responsibly and creatively preparing them for a future where AI will play a transformative role in various industries.