Workforce Readiness in the AI Era: An Empirical Qualitative Study of Higher Education and Upskilling Among Urban Muslim Communities in Indonesia

Abstract

The rapid advancement of artificial intelligence (AI), automation, and digital technologies has fundamentally transformed labor markets and redefined workforce skill requirements. This empirical qualitative study investigates the mismatch between higher education outcomes and labor market expectations in Indonesia, focusing on stakeholders from universities, industry, and government involved in workforce development. The study aims to identify critical skill gaps, examine factors influencing workforce readiness, and develop an integrated upskilling framework for the AI era. Data were collected through semi-structured interviews, focus group discussions (FGDs), and document analysis involving lecturers, university students, human resource practitioners, vocational training experts, and government officials from higher education and employment sectors in Indonesia. Thematic analysis identified five major challenges: outdated curricula, limited adoption of innovative learning approaches, weak lifelong learning culture, insufficient industry participation in curriculum development, and slow policy adaptation to technological change. Based on these findings, the study proposes an integrated upskilling model combining industry-aligned curricula, project-based learning, micro-credentials, professional certification, and university–industry collaboration. The findings demonstrate that strengthening collaboration among higher education institutions, industry, and government is essential for improving workforce readiness and establishing a sustainable lifelong learning ecosystem capable of responding to AI-driven labor market transformation in Indonesia.