The study primarily focused on examining the impact of digital disruption on tertiary education in the age of Artificial Intelligence, emphasizing exploring the nature of AI-driven disruption in tertiary education. A cross-sectional mixed-method approach was followed to collect data through an online survey from 450 participants. The study utilizes the Statistical Package for Social Sciences (SPSS) version 25 to analyze the data. The study results show that more than 90% of respondents are familiar with Artificial Intelligence (AI) and use it in their studies. Among them, 45.2% use AI frequently, 26.2% occasionally, and 21.2% always. 27.8% of respondents use AI for learning assistance, followed by (21.9%) for research, (17%) for creative projects, (19.6%) for personal use, (13.1%) for social activities, and other purposes. ChatGPT was the respondents' most frequently used AI tool (90.4%), followed by Gemini, QuillBot, and Grammarly. Among them, 43% said they are very likely to use AI due to free access. In comparison, 44% are likely to use it due to task automation, followed by personalized summaries, peer use, and popularity. Based on the Chi-square test results (p= 0.194>0.05), there is no statistically significant relationship between gender and the frequency of AI usage among the respondents. Participants reported that the key challenges they face in integrating AI into their education are (56.7%) similarity in outcomes, (57.7%) inaccuracy of information, (60.6%) over-reliance on AI, and (48.1%) the cost of the premium version.