Abstract: The integration of Artificial Intelligence (AI) in education has transformed learning environments, enabling more efficient and adaptive instruction. This study examines the impact of Microsoft Copilot, an AI-powered assistive technology, on student performance and engagement in blended learning. A mixed-methods approach was employed, combining pre-test/post-test analysis, LMS data, surveys, interviews, and focus groups. Results indicate that Copilot improves instructional efficiency, enhances engagement, and supports real-time assessment, although concerns about overreliance persist. The findings contribute to understanding AI's role in modern education and support the development of smarter digital learning systems.