The rapid proliferation of generative artificial intelligence (GenAI) since late 2022 presents a paradigm shift for the global economy, profoundly affecting graduate employability. This chapter explores the prospects of both technological unemployment and job redefinition driven by GenAI’s capabilities. It argues that universities play a pivotal role in preparing the workforce for this transition. A sustainable response requires curriculum reform to embed AI literacy, ethical considerations, and skills for effective human-AI collaboration. Furthermore, pedagogy must prioritise distinctly human capabilities, such as critical thinking, creativity, and empathy. By adopting comprehensive strategies, universities can enhance their role in equipping graduates for an AI-driven future.