This study investigates the perceived impact of procrastination on academic performance among undergraduate BBA students and evaluates the effectiveness of AI tools in mitigating procrastination. A structured questionnaire was administered to 202 respondents from St. Joseph’s College of Commerce (Autonomous), Bengaluru. Results indicate that procrastination is prevalent, with assignments (58.9 %) and research tasks (53 %) being the most frequently delayed. The primary causes of procrastination include lack of motivation (54 %), distractions (47 %), and overwhelming workload (31.2 %). AI tools such as ChatGPT and Grammarly were widely used, with factor analysis identifying two key dimensions of AI effectiveness: Reduce Distractions and Task Completion. While no significant gender-based differences were observed, older students perceived AI tools as more effective in enhancing task management (p = 0.041). Simplified task breakdowns, task prioritization, and AI-generated summaries were identified as the most beneficial AI features. The study highlights the need for increased integration of AI tools into academic workflows, along with structured guidelines and digital literacy programs to maximize their perceived impact on reducing procrastination and enhancing academic performance. © 2025 the author(s), published by De Gruyter, Berlin/Boston.