This study aimed to investigate the impact of generative artificial intelligence on student learning outcomes in higher education institutions. A mixed-methods approach was utilized, concentrating on a private university operating in Papua New Guinea. Data were gathered using an online questionnaire distributed to 101 intentionally selected students and 16 lecturers. Significant findings revealed enhancements in student grades, with several students utilising AI technologies for assessment completion, concept generation, and the exploration of study- related subjects. Both students and lecturers noted challenges, including limited access to computers, digital devices, and intermittent internet connectivity, along with the exorbitant cost of data. Furthermore, problems such as plagiarism arose, primarily due to the negligent utilisation of AI tools. This study sheds light on the impact of generative AI tools on student learning outcomes, engagement, and academic performance in higher education institutions, thereby guiding evidence-based AI integration in educational settings. Higher education institutions must establish explicit policies and training initiatives to govern the ethical and successful application of generative AI tools in pedagogy. Furthermore, lecturers should be motivated to include these tools in their pedagogical approaches to augment student involvement and promote academic performance. The study concludes that generative AI technologies, when properly integrated and ethically governed, can substantially improve student learning outcomes in higher education institutions.