The rapid growth of Artificial Intelligence (AI) and digital technologies is transforming the landscape of Library and Information Science (LIS). Modern libraries are shifting from traditional services toward technology-enabled, data-driven environments. This paper examines the importance of digital and AI literacy for LIS professionals, emerging AI applications in libraries, challenges to adoption, and strategies for building future-ready competencies. The study aims to provide a framework for academic and research libraries to integrate AI tools responsibly and effectively.