Generative AI (GenAI) has been one of the top trending topics in technology, applying to various industries and contexts. This study explores research progress on GenAI and education. This is done through a systematic literature review approach that followed the PRISMA process and design science research approach to create conceptual and system artifacts. The purpose is to examine the bright and dark sides of using GenAI tools among university students. Specifically, this research questions whether using GenAI would dumb down or positively transform university students. Concepts grounded in the pedagogical literature, such as sustained and unsupervised learning, are considered in the study to provide a novel lens to explore this research area at the conceptual level. The software includes ChatGPT as the GenAI tool for exploratory purposes of the conceptual models and Stella Architect for simulating the proposed models in a tested environment. The key research contributions include causal loop diagram models, prompt engineering, and multiple stock and flow diagram simulation tests. Results indicate that university students can sustain their current and future learning by understanding the real purpose of using GenAI tools. These provide valuable insights into the context of education and the workforce across various industries. Future researchers could empirically investigate how these foundational artifacts impact university students to provide more in-depth insights.