This study examines how students are able to think critically and solve problems when Artificial Intelligence (AI) tools are used in higher education. Using a kind of experimental research design, data were collected from sixteen undergraduate students with one group using AI-assisted learning and the other using traditional learning methods. In order to evaluate the improvements in cognitive performances with pre-test and post-test assessments, semi-structured interviews were conducted. The results indicated that the group using AI tools showed better improvement compared to the group that did not use an AI tool. For critical thinking, they had a delta of 1.41 meaning they did better at that score than the non-AI. The t-test score for the team was 4.12 and p-value < .01. Likewise, the delta for problem solving was 2.73, t-test=5.02 showing a p-value<.001. The estimated effect sizes suggest the effects of AI on higher-order cognition using all data were medium to large, d = 0.65−0.81. The qualitative information from the findings supported this. The AI technologies promoted engagement, student autonomy and strategic reasoning among students using it. AI-enhanced instruction, as per the analysis, can help learners develop critical reflections in addition to adapting learning and essential skills. Recommendations stress the importance of incorporating AI literacy and ethics in curricula to maximize rewards and reduce cognitive dependency................. Keywords:............. Artificial Intelligence, Critical Thinking, Problem-Solving, Higher Education, Cognitive Skills.