The role of artificial intelligence (AI) in education remains incompletely understood, demanding further evaluation and the creation of robust assessment tools. Despite previous attempts to measure AI's impact in education, existing studies have limitations. This research aimed to develop and validate an assessment instrument for gauging AI effects in higher education. Employing various analytical methods, including Exploratory Factor Analysis, Confirmatory Factor Analysis, and Rasch Analysis, the initial 70-item instrument covered seven constructs. Administered to 635 students at Nueva Ecija University of Science and Technology – Gabaldon campus, content validity was assessed using the Lawshe method. After eliminating 19 items through EFA and CFA, Rasch analysis confirmed the construct validity and led to the removal of three more items. The final 48-item instrument, categorized into learning experiences, academic performance, career guidance, motivation, self-reliance, social interactions, and AI dependency, emerged as a valid and reliable tool for assessing AI's impact on higher education, especially among college students.