The AI-Driven Self-Assessment and Proctoring System is an innovative process aiming to change the face of online assessments using the MERN stack and other sophisticated AI technologies. The platform enables teachers to dynamically create multiple-choice questions (MCQs) with large language models (LLMs), thus guaranteeing that the questions are relevant on one end and diverse on the other based on the specified topics. The students, powered by their unique room code, can seamlessly enter an assessment that goes in parallel lines with all the other purposes of being secure and user-friendly. Further, a self-assessment module is another feature of the system that allows students to assess their knowledge independently. Students may select topics of interest for AI-curated questions explicitly tailored to their learning needs, followed by a deep assessment of performance focusing on areas to be improved. The integrity of the exam is secured with the AI-malpractice detection mechanism that, at every instance, watches the actions of the candidates via the device’s camera while detecting any suspicious activity and stopping cheating in its tracks. In this way, the system promises a secure, trustworthy, and efficient assessment ecosystem for the teachers and students. On top of question generation for proctoring exams and grading, the system would help relieve teachers’ workload while engaging the students in the learning process. This AI concept employs a scalable assessment that is adaptable to the need for educational institutions to change and modernize their assessment practices. This technology-enabled solution guarantees equal opportunities in learning, hence becoming a giant leap toward the future of education.