Thus, the chapter aims to unravel the role of AI in skill enhancement with reference to critical thinking ability, problem- solving skills, and digital skills. With AI technologies gradually progressing to redefine employment situations in different parts of the world today, it has become essential to train the learners for the arising complex employment scenario. The first part of the chapter explores how critical thinking and problem solving can be improved by AI, such as using adaptive learning systems, simulation, and data analysis. It then goes further to illustrate how the use of AI tools in the teaching of digital literacy is conducted, with a focus on how the use of AI in learning makes it possible for a learner to be taught based on his/her specific needs and the acquisition of the fundamental skills needed in the digital competency. The last part looks at the ways of teaching education to prepare students for jobs with artificial intelligence, balancing between technical and humanities, ethics, and retraining. © 2025 by IGI Global Scientific Publishing.
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