In an era where artificial intelligence (AI) is reshaping educational paradigms, this study explores AI-based chatbot adoption in higher education among students and educators. Employing a Structural Equation Modeling (SEM) approach, the research focuses on developing and validating a comprehensive model to understand the multifaceted factors impacting the acceptance and use of these chatbots. The methodology integrates an extensive literature review, construction of a theoretical model, administration of a detailed questionnaire to a representative sample from the higher education sector, coupled with advanced SEM techniques for data analysis and interpretation. The SEM analysis validates the model's robustness and highlights the relationships between several key factors affecting users’ perspectives and chatbots adoption. Results reveal a predominantly positive perception towards AI-chatbots among both students and educators, underscoring the potential to substantially enrich their educational journey. However, it also uncovers critical concerns pertaining to trust, privacy, response bias, and information accuracy. Moreover, the study offers valuable insights into how moderators such as technological proficiency, user roles, and gender influence the adoption model relationships. This emphasizes the need for customizing AI-chatbots deployment to meet the diverse needs of users effectively. Contributing a robust framework for understanding users’ perceptions towards AI-chatbots and their adoption patterns, this study offers actionable insights for educational leaders, policymakers, and technology developers. It also lays the groundwork for future research, including longitudinal studies to evaluate the long-term impact of these technologies, investigations into their effect on learning outcomes, and explorations of the ethical and privacy considerations involved.