The study is concerned with how AI affects the mental and social development of children who go to school in the Uttar Dinajpur District, West Bengal, India. The study, as a consequence of the rising use of AI-tool in education, measures the effect of different technologies like intelligent tutoring system, AI-based application, etc. on children logical thinking, emotional quotient, and interaction. The study was adopted a quantitative research design, wherein a sample size of 150 (Male-80, Femle-70) students was drawn through stratified random sampling. A self-made questionnaire was used in this study and the data was collected partly through google form and partly in person and regression analysis were employed to validate the two hypotheses. The results revealed that the use of AI-based tools for educational purposes leads to a significant cognitive development (β = 0.149, p = .000), whereas social and emotional development is greatly impacted by the engagement with AI-driven applications (β = 0.497, p = .000). Moreover, the study found that AI is a potential educational assistant if the implementation is done thoughtfully and as well as ethically. However, there is a call for the importance of ensuring that the use of technology is accompanied by real-world social interactions to enable the all-round development of school going children.