Artificial Intelligence (AI) refers to the ability of machines to think intelligently like human beings. Augmented reality (AR) involves overlaying virtual objects on physical objects to enhance the experience of reality. AR technology necessitates various types of triggering, including marker-based, geographic or location-based, marker less, and position-based. This paper seeks to understand how young students pursuing higher education across India perceive AI and AR in the education sector. This study contributes to finding the factors influencing the adoption of AI in the education system. We sourced the literature from the Google Scholar and Scopus databases, using English-language criteria such as adoption and perceptions of AI, AR, and technology. We conducted an online survey involving approximately 200 students from all over India. We conducted this analysis in Excel. This study shows that around 90% of our young generation are familiar with the latest technologies. An interesting finding from this study is that over 65% of students use AI technology for educational purposes. Researchers have also observed significant barriers to AI integration, including data security and privacy concerns, lack of resources, biased results, cost of implementation, resistance to change, and lack of regular training for teachers. Addressing these challenges is crucial to increasing AI adoption and maximizing its potential in education. Most students believe AI in education could lead to biased predictions of academic performance, as algorithms are trained on historical data that may reflect inherent biases. Hence there is a need to train these algorithms. Around 72% of youths believe that AI-based monitoring tools record excessive amounts of their activities. AI monitoring tools should design clear limits on the type and scope of recorded data to address this issue and ensure user privacy. We must establish transparent policies and user consent protocols to enable students to manage their data while utilizing AI-based tools. Young people also believe that integrating AR with AI will be beneficial and enhance their learning experience. Future researchers should further analyze the factors influencing the adoption of AI in education using qualitative and quantitative methods with more theories and diverse samples, respectively.