This study examines the impact of Socratic Mind, a Generative Artificial Intelligence (GenAI) powered formative assessment tool that employs Socratic questioning to support student learning in a large, fully online undergraduate-level computing course. Employing a quasi-experimental, mixed-methods design, we investigated participants' engagement patterns, the influence of user experience on engagement, and impacts on both perceived and actual learning outcomes. Data were collected from the system logs, surveys on user experience and perceived engagement and learning gains, student reflections, and course performance data. Results indicated that participants consistently reported high levels of affective, behavioral, and cognitive engagement, and these were strongly linked to positive user experiences and perceived learning outcomes. Quantitative analysis further revealed that students who engaged with the GenAI tool experienced significant gains in their quiz scores compared to those who did not, particularly benefiting students with lower baseline achievement. Additionally, thematic analysis of qualitative feedback revealed substantial perceived improvements in higher-order thinking skills, including problem solving, critical thinking, and self-reflection. Our findings highlight the promise of AI-mediated dialogue in fostering deeper engagement and higher-order cognitive skills. As higher education institutions expand GenAI integration in curriculum, this dialogic, GenAI powered assessment tool can offer a scalable strategy to promote students' meaningful learning outcomes.

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