In contemporary higher education, Artificial Intelligence (AI) has shifted from a supplementary tool to an active participant in collaborative learning. This chapter explores AI’s role in enhancing group formation, streamlining communication, promoting accountability, and enriching intellectual engagement. Drawing on digital pedagogy and empirical studies, it highlights AI’s capacity to personalise learning, support equitable participation, and provide real-time feedback. Yet integration raises ethical challenges, including data privacy, algorithmic transparency, and student agency. The chapter proposes guidelines, data protections, and institutional audits to ensure responsible use. It concludes that AI’s value depends not only on technical capacity but on ethical, pedagogical design, positioning AI as a partner in group learning.