Paraphrasing is a crucial skill in academic writing, particularly for English as a Foreign Language (EFL) students at the university level, who often find it challenging to master. This research explores the potential of Generative Artificial Intelligence (GenAI), specifically ChatGPT, in assisting these students in developing their paraphrasing skills. Employing a qualitative study design, the research utilized a five-level paraphrasing assessment framework to evaluate ChatGPT’s effectiveness in generating high-quality paraphrases. The study focused on assessing ChatGPT’s ability to produce paraphrased content that aligns with the highest level of the assessment rubric, involving comprehensive restatement of text through phrase replacement and sentence structure rearrangement. The findings suggest that ChatGPT can be a valuable tool for EFL students, demonstrating the ability to generate paraphrases that meet high academic standards. However, the research also identifies limitations, such as the AI’s occasional failure to consistently align with the highest paraphrasing standards. Despite these limitations, with appropriate prompt design strategies, ChatGPT can effectively support students in achieving satisfactory paraphrasing outcomes. The study concludes that while ChatGPT shows promise as a supplementary tool for academic writing, a balanced integration of AI and traditional teaching methods is essential for optimal results.