The rapid development of generative artificial intelligence (AI) has significantly transformed university English as a Foreign Language (EFL) education, creating new opportunities for language learning, teaching, and assessment. This review synthesizes recent studies published between 2023 and 2025 to provide an overview of current research trends, major findings, research gaps, and pedagogical implications of generative AI in university EFL contexts. A critical narrative review with a systematic literature search was conducted using studies retrieved from Scopus, Web of Science, and Google Scholar. The reviewed literature indicates that research has expanded rapidly following the emergence of ChatGPT, with writing instruction, learner perceptions, and language performance being the most frequently investigated topics. Across the reviewed studies, generative AI was found to enhance language learning through personalized feedback, increased learner autonomy, and greater learning engagement. However, concerns regarding academic integrity, AI literacy, ethical issues, and institutional readiness remain significant challenges to its sustainable implementation. The review also identifies several research gaps, including the limited diversity of AI applications investigated, the dominance of short-term quantitative studies, and the lack of longitudinal and classroom-based research. Overall, this review highlights the importance of integrating generative AI through responsible pedagogical practices and provides directions for future research and AI-enhanced university EFL education.