The integration of artificial intelligence (AI) into the manufacturing sector introduces new challenges and demands for the engineering workforce in the evolving European economy. This paper investigates how advancements in AI tools, especially in manufacturing, necessitate a shift in engineering education to equip graduates with relevant skills and ethical understanding. While AI is not new to manufacturing, its ongoing development and increased accessibility bring forth fresh challenges related to required competencies and ethical considerations. Furthermore, this work explores the potential of incorporating recent AI tools, such as ChatGPT and other generative adversarial networks, into engineering education. This is illustrated through a case study of a master’s level digitalization course. In this course, AI tools aimed to help students bridge their programming knowledge gaps and educate them on ethical AI use, providing a model adaptable to lifelong learning courses in the field. This inquiry also addresses the broader concerns related to AI misuse in academic settings and the subsequent difficulties in plagiarism detection and accurate learning outcome assessment. The discussion does not argue against AI adoption but emphasizes managing its inadvertent impacts on the industry and society. By integrating emerging technologies and their ethical use into the curriculum, the engineering education system can better align with the shifting demands of the workforce in an increasingly digitalized manufacturing landscape.