Generative AI in higher education: the roles of knowledge, willingness, concerns, gamification and digital literacy in shaping perceived learning effectiveness and academic performance

Purpose Generative Artificial Intelligence (AI), gamification, and digital literacy have transformed higher education by enhancing student engagement, personalizing learning, and fostering digital competencies. This study investigated the impact of three dimensions of Generative AI—knowledge, willingness, and concerns—on students’ perceptions of learning and academic performance in Saudi Arabia. It also explores the roles of gamification and digital literacy. Both Gamification and digital literacy moderate the relationship between Generative AI and educational outcomes, whereas digital literacy affects the association between AI factors and students' perceptions of learning and performance. Design/methodology/approach A quantitative research design was adopted to collect data from 550 postgraduate students across various Saudi universities and disciplines. This cohort was chosen because of its heightened capacity to engage critically with advanced educational technologies. Employing two analytical approaches, the measurement model (validity and reliability) and structural equation modelling (hypothesis testing), statistical analysis was used to assess the relationships. Findings The results demonstrated that all the proposed relationships were significant. Knowledge, willingness, and concerns regarding generative AI were positively related to both PLE and PAP (H1: β = 0.328, p = 0.000), (H2: β = 0.192, p = 0.001), (H3: β = 0.294, p = 0.000), (H4: β = 0.149, p = 0.002). (H5: β = 0.138, p = 0.003) respectively. In addition, gamification and digital literacy exhibited significant moderating effects, as indicated in the results section, amplifying the positive impact of AI integration on students’ academic perceptions and outcomes. Originality/value This study provides empirical evidence of the interplay between Generative AI, gamification, and digital literacy in higher education, delivering practical insights for policymakers, educators, and technology developers. This underscores the importance of digital literacy training programs and policies promoting responsible, gamified AI integration, enhancing effective and inclusive learning environments in Saudi Arabia and beyond.