This study investigated the impact of AI-mediated feedback on the writing skills of Iranian intermediate EFL learners, with a focus on accuracy, coherence, and cohesion, as well as learners’ perceptions of the benefits and challenges associated with AI in the writing process. Sixty female EFL learners, aged 15 to 20, were purposively selected from a private language institute and divided into two groups: one receiving AI-mediated feedback via the Poe Application, and the other receiving traditional teacher feedback. Writing proficiency was assessed using IELTS Writing Task 2, administered as both pre- and post-tests. The results indicated that learners who received AI-mediated feedback demonstrated significant improvements in grammatical accuracy, coherence, and cohesion compared to those who received traditional feedback. Qualitative data, collected through semi-structured interviews with a subset of the experimental group, revealed that learners appreciated the immediacy, personalization, and accessibility of AI feedback, which enhanced their motivation and supported autonomous learning. However, participants also expressed concerns regarding the lack of human connection, potential over-reliance on AI, and the limitations of AI in understanding contextual nuances. These findings suggest that while AI-mediated feedback is effective in improving key aspects of EFL writing, it is most beneficial when integrated with human guidance.