An internship is a vital professional learning opportunity where students engage in meaningful projects that are directly aligned with their field of study and career interests. In today’s competitive labour market, internships not only provide firsthand practical experience but also serve as a crucial platform for integrating emerging technologies, including Artificial Intelligence (AI), to enhance career readiness. This study is to understand the impact of internship programs on the professional development and employability skills of undergraduate students, with a special focus on how AI-driven tools can augment these experiences. The findings indicate that internship experiences, when enriched with AI-based career counselling, analytics, and virtual collaboration tools, significantly bolster students’ confidence, technical proficiency, and soft skills, thereby improving their overall job readiness. The results underscore that an AI-aligned internship model not only prepares students for the modern workforce but also provides employers with a strategic advantage by nurturing future-ready talent.