This study investigates the transformative impact of artificial intelligence (AI) on education, assessing both its advantages and drawbacks. Employing the random sampling survey method, data was collected from 160 participants at Dhaka International University. The respondents, predominantly aged between 18-21 years with an average age of 20.6, exhibited varying levels of awareness regarding AI tools- 46 percent were familiar, 44 percent somewhat aware, and 10 percent unfamiliar. Notably, 72.5 percent of participants gained knowledge about artificial intelligence through online sources such as websites, research papers, and forums. The study identified prominent AI tools used by respondents, with ChatGPT being the most widely employed, alongside Google Translator, Microsoft Bard, Grammarly, QuillBot, and YouChat. ChatGPT, in particular, found extensive application in academic studies, research, website development, and app development. Interestingly, 17.5 percent of respondents reported being paid users of AI tools. Beyond usage patterns, the research delved into the efficacy of AI in enhancing education, addressing privacy concerns, and exploring associated challenges, benefits, impacts, ethical considerations, and potential future directions. Employing a Likert scale for assessment, the study concludes by advocating for the integration of AI in education while underscoring the imperative for safeguards to mitigate potential misuse. This comprehensive exploration provides valuable insights into the evolving landscape of AI within the educational sector.