Artificial intelligence (AI) is reshaping education by enabling personalized learning experiences that adapt in real-time to meet individual student needs. With features like real-time information on teaching and learning and predictive analytics, AI systems support differentiation and provide students with tailored learning pathways, fostering both engagement and autonomy. In this sense, AI is viewed as a transformative tool that can democratize access to quality education and promote social inclusion. The Education AI Project in Maltese primary schools serves as a focused study of these potential benefits, delivering adaptive Mathematics teaching and learning to approximately 500 students across diverse demographic settings. Through a mixed-methods approach, this study examines AI’s impact on student engagement, motivation, and differentiated learning, supported by quantitative metrics and qualitative insights from teachers and students. Findings reveal that the AI platform fosters individualized learning, enhancing engagement and supporting teachers in managing diverse needs. However, broader implications, including data privacy, algorithmic transparency, and the potential for social isolation, highlight the ethical dimensions of AI integration. Teacher feedback underscored the need for comprehensive training to maximize AI’s effectiveness in educational settings. This study provides actionable insights for educators, policymakers, and researchers, advocating a balanced approach that addresses ethical considerations while harnessing AI’s capacity to create inclusive, effective learning environments.