Abstract
The development of AI technology alters the nature of the workforce and learning needs of workers within vocational systems. This paper evaluates how artificial intelligence technology is transforming vocational education and training (VET), as well as lifelong learning, for purposes of global employability. The synthesis incorporates the information obtained from the works of international organizations and scientific papers that appeared in 2024-2026, as well as one national case study of the digital skills program Future Skills PRIME for India. AI-powered instruments, namely adaptive learning solutions, intelligent tutoring solutions, simulators powered by VR/AR, and AI-driven assessments, have been proven to contribute positively to skills development and engagement in vocational settings. As far as the information available about the employer perspective goes, AI and big data skills are among the most rapidly growing core skills worldwide, while the application of generative AI has proved that there is a substantial number of current occupations at risk of being transformed owing to task automation; the effects vary from person to person, depending on their gender, income, and place of residence. The conceptual framework proposed consists of three layers, which are foundational AI literacy, AI-based pedagogies, and employability, all connected by governance and ethics considerations.