This study makes five significant contributions to the literature on AI-enabled sustainable education. First, it develops a novel institutional readiness framework grounded in Dynamic Capabilities Theory to explain graduate preparedness in AI-driven business education. Second, it integrates quantitative PLS-SEM and qualitative thematic analysis to provide robust empirical evidence on the institutional and technological determinants of sustainable graduate preparedness in Bangladesh. Third, the findings demonstrate that institutional and policy support, including digital infrastructure and AI-enabled learning systems, is a stronger predictor of graduate preparedness than curriculum reform alone. Fourth, the study proposes an AI-Enabled Smart Education Implementation Framework that links AI infrastructure, smart campuses, AI-enabled learning management systems, learning analytics, curriculum personalization, and graduate preparedness. Finally, the research offers practical, technology-oriented recommendations for higher education institutions and policymakers to accelerate AI-driven digital transformation and sustainable human capital development in developing economies.
