This study examined the impact of supportive institutional environments and ethical concerns on students’ readiness to use ChatGPT and how this readiness predicts their intention to use it. The mediating role of readiness to use was also explored in the relationships between institutional support and its intended use, and between ethical concerns and intended use. We used data from 103 Nigerian university engineering students collected through a cross‐sectional online survey. Results indicate that only student readiness to use ChatGPT significantly predicts intention to use (β = .73, p < .001), while institutional support (β = −.01, p < .97) and ethical concerns (β = −.04, p < .88) do not significantly predict intention to use. Mediation analysis revealed that readiness to use ChatGPT does not significantly mediate the relationship between institutional support and their intended use (β = .30, p < .43), and between ethical concerns and intended use (β = .45, p < .24). These findings suggest that innovative use of AI in education is possible when students’ readiness keeps pace with technological advancement. However, adequate regulation must guide ethical use.