As technology advances in the twenty-first century, innovative approach has been identified for developing skills on artificial intelligence (AI) technologies among students. Hence, to continuously improve the knowledge acquisition process, it is important that university lecturers embrace applied learning for developing hands-on competencies of students. Through applied learning, educators can disseminate knowledge on AI by engaging in the direct application of their expertise and theories, resulting in in-depth understanding by the students. A narrative review technique supported with a theoretical interpretation from ADDIE was applied. Findings revealed that applied learning is suitable for educators to develop and sustain hands-on skills and competencies on AI among students. The five steps of the theory lead to practical change and development, while being able to strengthen the change achieved. Through analyzing, designing, developing, implementing, and evaluation of teaching and training contents, the final goal of transforming students' knowledge on AI is achieved.