This chapter explores how well AI-powered competency assessments can support agile and sustainable human capital development. While AI is actively being increasingly used in talent management, its potential to strengthen workforce agility and long-term development is still often overlooked. To address this gap, we introduce the AI-SHAPE framework, which provides a practical guide for organizations to assess skills, performance improvement and foster adaptive customized learning. The framework highlights how an agile organizational culture can enhance the impact of AI-driven assessments. Insights from this chapter will suggest the combination of AI assessments with agile practices. This helps employees grow continuously, enables organizations to adapt quickly to change and promotes sustainable human capital strategies. The chapter offers practical guidance for HR leadership and top-level management seeking to implement assessment systems that are not only effective, but also culturally aligned.