“Adaptive Learning Technologies” (ALTs) and “Interactive AI Tools” (IAITs) play a crucial role in modern education by personalizing learning experiences, enhancing “student engagement”, and improving learning outcomes. These technologies facilitate real-time feedback, customized content delivery, and interactive learning, fostering an efficient and inclusive educational environment. However, limited research has explored their impact on “student engagement” and satisfaction, particularly within smart learning environments. This study investigates the influence of ALTs and IAITs on “student engagement” and satisfaction among technical students in Itanagar Smart City. A quantitative research approach was employed, collecting data from 282 students enrolled in engineering, BCA, and MCA programs. The study was conducted in the smart-city Itanagar, Arunachal Pradesh, India. Structural Equation Modeling (SEM) was used to analyze the relationships between ALTs, IAITs, engagement, and satisfaction, with Confirmatory Factor Analysis (CFA) ensuring construct validity and reliability. The findings reveal that both ALTs and IAITs significantly enhance “student engagement”, which in turn positively influences satisfaction. These results highlight the importance of integrating AI-driven educational tools to optimize learning experiences and improve student outcomes.