Both IIIT Allahabad (IT) and NSUT are a good option, but of the two, whichever has better is upon what you find to interest you, want to do, and what you like. So, here's the comparison, which would help further the choice.
1. IIIT Allahabad (IT)
Pros
Reputation: The IT course in this institute has been excellent as core computer science, and the fields related to IT have always remained under focus here.
Placements: There are excellent placements by top recruiters in the IT and software sectors.
Curriculum: Full-fledged IT curriculum covering core topics like computer Science basics, networking, software engineering, and many more.
Coding culture: It has coders with a high number of competitive programmers.
Research Opportunities: Campus offers projects in data science, cybersecurity, software development, and many more.
Cons:
Not Very Much on AI Focus : You may try that out but not exactly a very niche program, to be honest compared to a CSE (AI) programme at NSUT.
Location: Allahabad won't be an exposure equal to Delhi (NSUT).
2. NSUT (CSE with AI Specialization)
Pros:
Reputation: NSUT is one of the best engineering colleges in Delhi and has an excellent reputation in CSE.
-AI Specialization: Best for the students who are looking out for a career or a research career in AI, ML, and DS.
Placements: Quite good stats with the companies coming in mainly for AI and ML
Location advantage: It's Delhi. More exposure and networking and much better internships
Curriculum: It goes into more depth about the learning that occurs, and neural networks and other advanced AI tools are taught.
Cons:
Options are Limited: If one wants to switch to other subfields of computer Science later then, the specialised AI course is a drawback.
Coding Culture: Good but not intense like that of IIIT Allahabad.
More Range: If you aren't sure of a certain domain and you want an extended base in IT/CS, IIIT Allahabad (IT) is better.
Passionate for AI/ML: If you are interested in AI and think that a big part of your life will be in AI/ML, then opt for NSUT (CSE with AI).
Others End
Placements: Both colleges have very good placements. Look at the companies visiting each campus.
Location Preference: Delhi, NSUT, has way more opportunities for internships and industry work experience than Allahabad, IIIT-A.
More Research: This is a great platform to get a master's or Ph.D. in AI
Conclusion
Choose IIIT Allahabad (IT) if one is more interested in having stronger IT education, better coding cultures, and some flexibility routes for professional careers.
Choose NSUT (CSE with AI) if one is especially interested in specialisation AI, and therefore, all of the benefits come along in the form of locality along with concentration on a single stream.