This chapter examines how artificial intelligence fundamentally transforms the nature of skill acquisition and intellectual development, moving beyond the simplistic narrative of job displacement to reveal a more profound disruption in how humans develop expertise. Drawing on cognitive science research spanning five decades, from Anderson’s ACT theory to contemporary studies of AI-assisted learning, we demonstrate that AI’s primary impact lies not in eliminating employment but in restructuring the pathways through which individuals acquire knowledge, develop competencies, and achieve mastery. The chapter introduces the concept of “cognitive restructuring,” the process by which AI technologies alter the fundamental mechanisms of human learning by bypassing the effortful processing essential for procedural memory formation. Through analysis of foundational skill acquisition research and contemporary evidence from AI-augmented work environments, we establish that AI creates an “augmentation illusion,” the appearance of accelerated competence development that masks the disruption of deeper expertise formation. This analysis provides the theoretical foundation for understanding the AI-Competency Ceiling explored in Chap. 4 , demonstrating why AI augmentation may accelerate early skill development while potentially limiting the transition to true expertise.