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The integration of artificial intelligence (AI), notably ChatGPT, into academic settings poses both opportunities and challenges for students' writing and critical-thinking skills. This study explores the implications of incorporating ChatGPT into English language paraphrasing activities to enhance students' language proficiency and analytical reasoning while addressing concerns about AI's impact on education. Through the development of Paraphrases Matrix and the meticulous crafting of paraphrasing activity worksheets, undergraduate students engaged in structured activities aimed at improving their paraphrasing skills and understanding of AI's capabilities and ethical implications. The study involved five groups of undergraduate students enrolled in an Academic Writing Skills course, who underwent sequential paraphrasing stages and reflections on their experiences. Results indicate initial errors but significant improvement in students' paraphrasing abilities and awareness of ChatGPT's utility and limitations. This project offers valuable insights into responsible AI integration in education, emphasizing critical thinking and independent writing skills essential for navigating an AI-dominated future.