Abstract, the use of Artificial Intelligence (AI) in developing new teaching-learning solutions is gaining momentum towards transforming the education system in Egypt. Schools are beginning to shift from conventional methods of teaching to smart education to enhance students' learning experiences. Reviewing the literature on machine learning, personalized learning, and Bloom's taxonomy, and using qualitative approach; we set out to examine the following: How are the educational technology departments in Egypt using AI to change the ways teachers teach and students learn? What are the untapped AI-technologies that have the potential to transform the Egyptian education system? We conducted in-depth interviews with five specialized experts working in the field of technologies related to artificial intelligence and five leading Egyptian educational technology experts who work in developing artificial intelligence-based education systems for schools. Deploying grounded theory, we found that personalized learning, recommendation systems, and adaptive assessments are helping students and supporting teachers. In an emerging country context, we demonstrate the educational technology departments' view of AI and the experts' view of AI. The gaps between these views indicate the immense potential of AI which can be tapped by educational technology firms in their future applications. The study recommends that artificial intelligence has profound implications for the transformation of the education system in emerging countries.