With the rapid advancement of information technology, artificial intelligence (AI) has been increasingly integrated into the education sector, particularly in higher education. The combination of AI and innovative education has emerged as a key pathway to enhance college students 'critical literacy. This paper examines the application and practice of AI in innovative education through relevant literature, analyzes its role in fostering critical thinking and innovation capabilities among undergraduates, and proposes concrete implementation strategies. The findings demonstrate that AI can improve students' critical literacy and innovation abilities through intelligent learning tools, personalized teaching plans, and knowledge management platforms. However, educators and administrators must leverage AI technology to create an innovative educational environment tailored to students' development, guiding them to adapt to modern learning methodologies and mindset shifts.