Smart education has become essential for efficient learning and effective teaching in higher education institutions. The study attempted to develop a modular framework for an artificial intelligence-based smart educational system. Relevant research studies were reviewed accordingly. Analytical Hierarchy Process (AHP) was also done. Relevant studies recommended that educational data mining and machine learning algorithms would help in generating an optimized dossier of content for enhanced learning and effective teaching. Therefore, the proposed Artificial Intelligence-based smart education system encompasses various subsystems such as the modular framework for the blended system, smart pedagogy, decision support systems, social networking platforms, crowdfunding/ crowdsourcing, computers/ television/ radio transmission, and easy access to internet services for efficient percolation of education and satisfaction of the stakeholders. This study can pave the foundation for the effective implementation of Artificial Intelligence into efficient educational systems.