The rapid advancement of artificial intelligence (AI) has reshaped the competencies required in the labor market, making it essential to investigate how digital competence and technology-based learning contribute to students’ career readiness. This study examines the influence of Digital Literacy, AI Learning Tools Usage, and Learning Engagement on Career Readiness, with Learning Agility as a mediating variable. Data were collected from 987 undergraduate students across eight study programs in the Faculty of Tarbiyah and Teacher Training at UIN Ponorogo. Using a proportionate stratified random sampling technique, the survey data were analyzed with PLS-SEM. The findings indicate that AI Learning Tools Usage has the strongest direct and indirect effect on Career Readiness, with Learning Agility functioning as a partial mediator. Learning Engagement also shows a significant direct effect, while Digital Literacy does not exert a significant influence. These results highlight that basic digital competence, while necessary, is insufficient to predict employability without integration with advanced technological tools and adaptive learning capacities. The study emphasizes the importance for higher education institutions to integrate AI-based learning, foster student engagement, and intentionally cultivate learning agility to strengthen graduates’ preparedness for the workforce.
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