Despite the rapid integration of ICT and digital technologies in developing countries like India, the systematic adoption of AI-based Technology-Enhanced Learning (TEL) tools in engineering education seems slow. Even though previous research highlights the role Engineering teachers play, studies related to the involvement of engineering teachers in the systematic are very few. This study tries to explore the engineering teachers’ perception and understanding of the AI-based TEL tools and their adoption in their daily teaching practice. It employs a qualitative approach with semistructured interviews of 21 teachers, by tailoring the questionnaire from a similar study in Estonia. The analysis of the responses revealed that the participants are aware of ChatGPT, Quillbot, and Grammarly (the ongoing buzzwords among digitally-aware and -enabled population), while their understanding of AI-based TEL tools for teaching purposes is limited. 86 the participants envision benefits in using AI-based TEL tools for accessing information, creating content, and reducing their administrative and academic workload, but some concerns such as misuse of such tools, and lack of understanding have also been raised. The results of this study necessitate the need for further training addressing the specific needs of teachers in different streams of engineering education.