Artificial Intelligence (AI) and automation are transforming the global labour market by redefining job roles, required competencies, and organisational learning priorities. This study investigates the growing need for upskilling among employees as workplaces adopt AI-enabled systems. The study combines insights from established global and Indian literature with sample-based data to analyze how AI adoption impacts workforce readiness and skill development. Data from institutional reports such as the International Association of Workforce Professionals (2024), All Multidisciplinary Journal (2025), SDMIMD HR Conference (2023), and Taylor & Francis (2021) were examined alongside sample dataset analysis. The findings indicate that while automation displaces repetitive jobs, it simultaneously generates demand for complex cognitive, technical, and interpersonal skills. Indian organizations are rapidly adopting AI tools but often lack structured training mechanisms to address the emerging skill gap. The study emphasizes that strategic upskilling programs, leadership involvement, and policy support are critical for sustaining employability and competitiveness in the AI era.