Abstract:
The research examines what are the challenges on AI utilization of undergraduates in learning
environment in Sri Lanka. AI plays a very important role in higher education around the world. A quantitative
research approach was used to this study and 384 undergraduates were selected as samples for this study. Data
Analysis part demonstrates that better technology infrastructure leads to more AI utilization, but students remain
hesitant because of their privacy worries. Undergraduates in poor Data privacy show decreased interest in learning
or using AI systems. The study shows a combination of improved technological infrastructure and strengthened
data privacy measures that foster higher AI adoption in higher education. This study offers insights for
policymakers, university administrators, and educators that help them in using AI in education and improving
learning outcomes in developing nations.