The growing presence of AI-generated videos on social media has raised concerns about their impact on students’ trust in online content and their understanding of reality. This study investigates how students from Universiti Malaysia Sabah (UMS), representing different academic programmes, perceive AI-generated videos and how such content influences their confidence in the authenticity of online videos. A quantitative research approach was adopted using a structured questionnaire. Before the survey was conducted, preliminary research was carried out, including a review of relevant academic literature, informal discussions with students, and observation of AI-generated videos on social media platforms. During the data collection process, participants were shown several examples of AI-generated videos before completing the questionnaire to ensure a common understanding of the content. A total of approximately 100 UMS students participated in the study through an online Google Form survey. The findings show that frequent exposure to AI-generated videos has reduced students’ trust in online video content and affected their perception of reality. The study emphasizes the importance of strengthening AI and media literacy education in higher learning institutions.