The rapid integration of Artificial Intelligence (AI) tools in higher education has changed the learning and teaching processes, especially for those learning English as a Foreign Language (EFL). This study explores how undergraduate EFL students at Sabratha University in Libya use generative AI, how it helps them, and the challenges and ethical issues they face. It specifically looks at how these tools are used to support language learning, access study materials, and improve academic performance. Using a qualitative research design, semi-structured interviews were conducted with 21 EFL students from the third to eighth semesters. The collected data were then analysed using a thematic framework to identify core patterns in the students' experiences. The results indicate that while AI tools offer great learning benefits, students also face serious practical and academic challenges. On the positive side, AI acts as a personalised learning partner that helps students build their vocabulary, translate text, and improve their writing through instant feedback. On the negative side, students struggle with a dependency dilemma, where relying too much on AI threatens to decrease their critical thinking and original writing skills. This issue is complicated by concerns over accuracy, which force students to constantly double-check AI outputs due to frequent "hallucinations" or false information. Moreover, students face a lot of confusion about academic integrity and what counts as their own work, a problem made worse by a complete lack of university AI guidelines. In addition, local infrastructure issues, such as weak internet, high subscription costs, and gaps in basic digital skills, heavily limit how well students can use these tools. The study concludes that although Libyan EFL students are actively using AI chatbots to help them learn, they are navigating this huge technological shift entirely on their own. Thus, for AI integration to be safe, ethical, and successful in the long term, universities must step in. This study highlights the urgent need for higher education institutions to create clear AI policies, invest in better technical infrastructure, and offer digital literacy training so students can use these tools effectively and responsibly..................... Keywords:.............Artificial Intelligence, Generative AI, EFL, Academic Integrity, Libyan Higher Education, Sabratha University, Digital Literacy.