Academic performance and student engagement are constant challenges in the field of modern education. When it comes to engaging students, traditional teaching methods frequently fall short, so creative solutions are needed. The Transformative potential of Augmented Reality (AR) technology as a cutting-edge teaching strategy is examined in this study. AR presents a dynamic, immersive learning environment that has the potential to completely transform conventional classrooms. By incorporating AR into the curriculum, our research transforms pedagogical paradigms, closes the engagement gap, and raises academic performance through an adaptive learning system. The study reveals the complex dynamics of AR-enhanced education through thorough analysis, powerful visualizations, and significant ANOVA results (p-value=0.03). It challenges accepted educational theories and provides insights into the complex effects on learning outcomes and student engagement. This study highlights the significance of AR in educational settings and promotes its incorporation as a transformative instrument that can establish dynamic and captivating learning environments, encourage critical thinking, creativity, and early field exploration through Artificial Intelligence (AI), and ultimately mould future leaders who can succeed.