As Artificial Intelligence (AI) continues to make significant moves in various sectors, its integration in educational fields has become increasingly prevalent. AI's potential to revolutionize teaching and learning processes offers numerous benefits, such as personalized learning and efficient administrative tasks. However, some adoptions of AI also raise several ethical dilemmas for both students and teachers, demanding careful consideration, and responsible implementation. This paper explores the ethical challenges that arise from the extensive use of AI in educational settings, focusing on the perspectives of students and teachers. It sheds light on the complex interplay between technology and human interaction (social intelligence) within the realm of education, seeing through issues concerning intellectual capacity (autonomy, literacy, and authenticity) and ethical capabilities.