Muhammad Younas, Rashid Menhas, Uzma Noor
ABSTRACT This study investigates the multifaceted role of artificial intelligence (AI) and digital transformation (DT) in reshaping smart learning environments within the education sector. Using structural equation modelling with data collected from 585 participants in China, the research examines the relationships between key constructs such as digital interactive platforms (DIP), technological self‐efficacy (TSE), adoptive learning systems (ALS), AI integration (AII) and technostress and learning intentions. The findings reveal that adaptive learning systems and digital interactive platforms are critical drivers of AI integration, with significant positive relationships observed between ALS and AII ( β = 0.402, p < 0.001) and DIP and AII ( β = 0.143, p = 0.001). However, TSE demonstrated a non‐significant relationship with AI integration ( β = 0.005, p = 0.878), suggesting that traditional teaching competencies may require enhancement through professional development to align with AI‐driven innovations. Contrary to expectations, DT did not significantly moderate the relationships between the constructs. This study addresses the research gap in the scarcity of analytical evidence on the impact of AI on education, highlighting the importance of equitable access to digital infrastructure and the need for ethical considerations in AI implementation. The results underscore the need for sustained investment and strategic planning to realise the transformative potential of AI in education. Future research should explore cross‐cultural variations and the long‐term impacts of AI on cognitive and socio‐emotional skill development.