The rapid advancement of Artificial Intelligence (AI) has significantly influenced the global education sector, offering new avenues for enhancing teaching and learning experiences. This research paper investigates the extent, effectiveness, and challenges of AI integration in higher education institutions of Tripura. Employing a qualitative case study method, data were collected through interviews with faculty members, student surveys, and analysis of institutional documents from selected General Degree Colleges. The study explores how AI-based tools such as intelligent tutoring systems, adaptive learning platforms, and automated grading applications are being utilized to promote personalized learning and academic efficiency. Findings indicate a positive perception among teachers and students regarding AI are potential to improve engagement and outcomes. However, inadequate digital infrastructure, limited technical training, and absence of comprehensive institutional policies pose significant challenges to implementation. The research concludes that successful integration of AI in Tripura’s colleges requires strategic planning, faculty development initiatives, and supportive government policies to build a sustainable, technology-enhanced educational environment aligned with the vision of Vikshit Bharat 2047.