The unprecedented advancements in Artificial Intelligence (AI) have reshaped global industries, necessitating urgent alignment of Higher Education Institutions (HEIs) curricula with evolving workforce demands. This study investigates the gap between AI education and industry requirements through a dual approach: a systematic review of challenges in curriculum alignment and an empirical survey of AI coverage in 25 public and private universities across Malaysia, the UK, and the Middle East. The findings reveal systemic shortcomings, including fragmented curriculum design, outdated pedagogical practices, limited industry collaboration, faculty skill gaps, and insufficient emphasis on ethical and regulatory frameworks. To bridge these gaps, the study proposes actionable recommendations: faculty development programs to enhance practical expertise, dynamic curriculum redesign integrating emerging AI specializations, structured academia-industry partnerships for real-world relevance, problem-based learning to address skill deficiencies, and lifelong learning ecosystems to support continuous upskilling. These strategies aim to equip graduates with the technical, ethical, and interdisciplinary competencies demanded by modern industries.