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Academic dishonesty caused by unauthorized electronic device use threatens examination integrity in contemporary education. Hence, PROCTORAI: A Portable AI-IoT System for Intelligent Examination Monitoring, a portable system integrating Artificial Intelligence (AI) and Internet of Things (IoT) technologies to secure students’ devices and enhance invigilation effectiveness. The problem arises from increasing reliance on smartphones, smartwatches, and concealed gadgets, which conventional manual supervision cannot adequately control. This innovation aims to provide secure device storage, enable real-time monitoring, support centralized supervision, apply AI-assisted analytics for abnormal behavior detection, and generate post-examination audit data. The methodology involved problem identification, product design with transparent under-desk installation, integration of digital locking, sensors, Exam Alert Light (EAL), AI behavior analysis, and IoT-based monitoring, followed by staged implementation during examination stages and continuous evaluation. The resulting product is a modular cyber-physical system combining physical security, intelligent analytics, and centralized dashboard supervision without permanent infrastructure modification. Future recommendations include enhanced IoT connectivity, environmentally sustainable energy solutions, and development of integrity analytics, with strong commercialization potential across educational institutions, government agencies, certification bodies, and global markets. Overall, PROCTORAI offers a proactive, scalable, and technology-driven approach that transforms traditional invigilation into a secure, data-driven examination integrity system aligned with smart education initiatives.