This study investigates the perceived threats posed by artificial intelligence (AI) on the academic retention and critical thinking of business education undergraduates in public universities within Anambra State. Employing a descriptive survey design, the research focuses on a population of 724 individuals. The sample consists of 206 business education students spanning years 1-4 from both Nnamdi Azikiwe University, Awka, and Chukwuemeka Odumegwu Ojukwu University, Igbariam. A total of 109 business education students were selected from Nnamdi Azikiwe University, Awka, while 97 were chosen from Chukwuemeka Odumegwu Ojukwu University, Igbariam, using stratified random sampling technique. The study was guided by two research questions, and data were collected using a structured questionnaire. Validation of the research instrument was conducted by three experts. Mean scores and standard deviation were utilized to analyze the research questions. The findings reveal a significant perceived threat of artificial intelligence on the academic retention and critical thinking of business education undergraduates in public universities within Anambra State. Recommendations include advocating for controlled usage of artificial intelligence to facilitate student academic retention and emphasizing the importance of students’-controlled use of AI to mitigate potential negative impacts on academic performance.