This study aims to examine how Artificial Intelligence (AI) integrates with the principles of Education 4.0 to support the transformative goals outlined in India’s National Education Policy (NEP) 2020. The primary objective is to evaluate the extent of AI adoption in educational institutions and determine its impact on personalized learning, teaching efficiency, and institutional readiness. A mixed-methods approach was employed, combining quantitative surveys from 180 participants-students, teachers, and administrators-with qualitative semi-structured interviews to gain deeper insights into experiences and challenges associated with AI-enabled learning. Quantitative analysis using descriptive statistics, correlation, and regression techniques revealed high AI adoption (mean = 4.1), strong improvements in personalized learning (mean = 4.0), and notable gains in teaching efficiency (mean = 3.9). A moderate positive correlation (r = 0.61) between AI usage and personalized learning, along with a significant regression result (β = 0.47, p < .01), confirms the effectiveness of AI-driven pedagogical innovation. Qualitative findings highlighted enhanced engagement and workload reduction but also identified infrastructure gaps and training needs. Overall, the study demonstrates that AI significantly advances the vision of Education 4.0 and NEP 2020, achieving improved learning outcomes while emphasizing the need for equitable digital readiness and ethical AI deployment