<p>This study aims to explore the perspectives of hospital administrators and students in hospital administration regarding the implementation of artificial intelligence (AI) in administrative functions, with an emphasis on their perceptions and the prospective ramifications for healthcare delivery. A descriptive cross-sectional study with purposive sampling was utilised to obtain a sample of 150 hospital administrators and 150 students from the Delhi NCR region. Data was collected using a pre-structured questionnaire made based on a literature review and expert consultation; thereafter, it was shared using Google Forms. For data processing, SPSS version 29 was used, and ANOVA and Mann–Whitney U tests were conducted to identify differences in perceptions related to AI among participants. The findings revealed that the two groups differed significantly (<i>p</i> &lt; 0.001) in 9 of the 13 AI-related variables. Students demonstrated substantially higher levels of AI optimism regarding healthcare professionals, reducing diagnostic errors and bias, improving healthcare delivery and patient satisfaction, and generating employment opportunities. On the other hand, hospital administrators displayed greater concern about data privacy and job security. No significant differences were noted regarding the participants’ perceptions of workflow, resource allocation, and scheduling. The findings reveal that hospital administrators and students hold differing views on the use of AI in hospital administration. Addressing the gap, where hospital administrators underestimate the advantages of AI above a certain threshold, is possible through specialised education programs, AI-inclusive educational materials, and policies that encourage innovation while restricting the ethical and workforce elements.</p>