This paper explores the integration of generative AI (GenAI) in the feedback process in higher education through a learning analytics (LA) tool, examined from a feedback literacy perspective. Feedback literacy refers to students' ability to understand, evaluate, and apply feedback effectively to improve their learning, which is crucial for fostering self-regulated learning and academic growth. GenAI has the potential to open new avenues of research and design in augmenting feedback practices by providing innovative, personalized, and scalable feedback solutions. The study investigates how GenAI functionalities, specifically ChatGPT explanation features and GenAI-powered dashboard visualizations, can support students in engaging with feedback. Using feedback literacy theory, a thematic analysis was conducted and triangulated with usage trace data to assess students' perceptions of these functionalities. The study involved three key activities: introductory lab sessions, in-semester use of the GenAI-powered LA feedback tool, and post hoc interviews, with data collected from 18 students from various disciplines (information technology, education, business and economics, and engineering) throughout all phases. Initial findings from the lab sessions showed positive perceptions of the GenAI functionalities. However, trace data from in-semester use indicated modest engagement with GenAI. Post hoc interviews revealed that reduced engagement was due to a mismatch between the GenAI outputs and student expectations. While some students appreciated the GenAI functionalities, others found them redundant when they perceived the feedback as clear and easy to understand. This study highlights the potential of GenAI in the feedback process and underscores the challenges of aligning AI tools with diverse student needs. Future developments should focus on creating adaptive and discipline-specific GenAI solutions.