This chapter critically examines the role of AI in educational settings, emphasizing both its potential benefits and inherent limitations. The chapter begins by highlighting the dual nature of AI, its promise to revolutionize education and its potential to replicate or exacerbate existing inequities. It discusses the ethical implications of AI, including issues of fairness, accountability, and transparency. The chapter also explores the concept of “self-certifying professional elites” and their influence on educational norms, drawing parallels with Ivan Illich’s critique of institutionalized education. The chapter delves into the complexities of integrating AI into higher education, where it can serve as a valuable tool but also risks undermining the social richness and immediacy of traditional educational settings. It argues for a balanced and ethical application of AI, emphasizing the need for collaborative efforts among educational institutions, technology companies, and governments. The chapter also discusses the role of educators in an AI-augmented curriculum and the ethical responsibility that falls on both students and educators when interacting with AI tools. It concludes by advocating for a balanced educational approach that incorporates digital literacy and critical thinking, preparing both educators and students to navigate the increasingly digital world.