Empowered by AI: exploring the link between literacy, self-efficacy, and career expectations

Artificial intelligence is reshaping higher education, yet little is known about how students' AI related beliefs connect to their career expectations in emerging economy systems. This study examines links between AI literacy, perceived usefulness of AI, attitudes toward AI, AI self-efficacy, and career expectations in AI-driven industries among Vietnamese undergraduates. A cross-sectional survey of 850 students across five campuses was analysed using Partial Least Squares Structural Equation Modelling within an integrated Technology Acceptance Model and Social Cognitive Career Theory framework. AI literacy significantly influenced perceived usefulness, attitudes, and AI self-efficacy, while perceived usefulness was the strongest impact on both attitudes and self-efficacy. Together, literacy, usefulness, and attitudes explained 47.1% of the variance in AI self-efficacy, which in turn was the strongest effect on career expectations in AI-driven industries, accounting for 37.4% of their variance. These findings show that students' confidence in using AI is a key psychological mechanism linking AI literacy and perceived usefulness to career expectations for working in AI-intensive environments. The study provides large-scale evidence from a non-Western context and suggests that higher education institutions should embed structured AI literacy pathways, authentic AI-supported learning tasks, and explicit attention to responsible AI practices in order to strengthen both academic confidence and students' career expectations in AI-driven industries.