Academic dishonesty in higher education is a growing concern, exacerbated by the increasing use of AI tools in online assessments. This study investigates the relationship between AI tool dependence, ethical awareness, student attitudes, and academic dishonesty among college students. It also explores the moderating effects of demographic factors. Survey data from college students were analyzed using a Generalized Linear Model (GLM) framework for a thorough examination of the complex interplay between the variables while considering the moderating influence of age, gender, type of institution, and technological proficiency. The study reveals that AI tool dependence is prevalent among college students. While students generally hold positive attitudes toward academic integrity, there is variability in the intensity and nature of these attitudes. Moreover, ethical awareness appears limited, highlighting a potential gap between ethical beliefs and behavior. Surprisingly, there is a consistent pattern of positive attitudes toward academic dishonesty. However, these findings are not explored in-depth in this study. Importantly, neither ethical awareness nor student attitudes significantly mediate the relationship between AI tool dependence and academic dishonesty. Demographic factors do not appear to significantly moderate these relationships. In light of these findings, institutions are encouraged to explore the implementation of the AI Dependence Inclusive Course for Transparency Program (AIDICT). This specialized initiative, shaped by the study’s insights, enhances ethical education and raises awareness of the ethical implications associated with AI tool usage.