Physical education (PE) plays an important role in Indian higher education in encouraging students' overall development. With the appearance of Digital India and NEP 2020, artificial intelligence (AI) has emerged as an outstanding tool for increasing the standard, inclusion, and efficacy of college-level physical education programs. This study explores the use of AI in Indian physical education, focussing on technology such as intelligent coaching systems, automated evaluation tools, and sports education robots. The study uses a descriptive and qualitative research technique based on secondary data to investigate how AI may improve data-driven decision-making, personalise learning, and provide real-time feedback. Budgetary restrictions, teacher readiness, infrastructure shortcomings, and moral quandaries are among the issues it examines. This research study suggests the development of digital infrastructure, capacity-building programs, and rules and regulations to ensure the successful and responsible use of AI. The study suggests that incorporating AI into physical education might foster creativity, diversity, and experiential learning—all of which align with India's objective of technology-driven, all-encompassing, and future-ready education.