The rapid integration of generative artificial intelligence (AI) technologies into higher education raises urgent pedagogical and ethical questions, particularly around student engagement, academic integrity, and the future of learning. This study explores self-reported usage patterns, attitudes, and ethical perceptions related to generative AI among 87 undergraduate psychology students at a UK university. Using a cross-sectional online survey, we gathered data on students’ familiarity with generative AI, their attitudes towards it, their academic usage behaviours, and their justification (neutralisation) of its use in potentially inappropriate academic contexts. Over half the sample (54%) reported using generative AI to support their studies, primarily through ChatGPT. These users displayed significantly more positive attitudes towards AI and significantly higher neutralisation scores, indicating a stronger tendency to rationalise questionable or academically dishonest uses. Attitudes were a small but significant predictor of neutralisation. Most users reported using AI for concept explanation and idea generation, and the majority indicated they would use it again. Conversely, non-users more frequently endorsed restrictive views on AI use in assessments. The findings highlight a tension between the perceived pedagogical value of generative AI and the risks of academic dependency and erosion of critical thinking. Students recognise both the utility and the limitations of these tools, with many calling for clearer institutional guidance. We argue for a balanced approach that supports responsible AI integration into learning, paired with continued student-centred research to inform policy and practice.