Incorporating AI and digital technologies in the realm of STEAM education has created a paradigm shift in the higher education sector. Studies have proved that employing AI and digital technologies in STEAM education helps students develop passion and interest in research. Apart from reviewing recent scholarly literature in peer- reviewed journals, this chapter also draws on the results of two studies conducted in South Indian states to examine the advantages and challenges of implementing high- tech AI technologies in STEAM education. In the first study, data were collected from 165 STEAM students and 50 STEAM educators who teach these students. The second research was conducted among 355 students who opted STEAM subjects for higher studies. The study shows that AI and gamified teaching improve student interest, research skills, and critical thinking. However, educators face challenges like lack of expertise, data privacy, and difficulties ensuring equal access to AI powered resources. © 2025 Elsevier B.V., All rights reserved.