This study assessed the levels of digital literacy and artificial intelligence (AI) readiness among final-year agricultural education students at Lagos State University of Education (LASUED), Oto-Ijanikin, and Federal College of Education (Technical), Akoka, Nigeria, in relation to their preparedness for entrepreneurial engagement and economic diversification in agriculture. Employing a descriptive survey design, data were collected from the entire population of 80 students (72 from LASUED and 8 from FCE Akoka) using a structured questionnaire. The instrument demonstrated high reliability (Cronbach’s alpha = 0.82). Data were analyzed using mean scores and standard deviations on a 5-point Likert scale. Findings revealed moderate digital literacy (overall M = 3.42, SD = 0.65), low-to-moderate AI readiness (M = 2.89, SD = 0.72), and moderate entrepreneurial preparedness linked to digital and AI skills (M = 3.67, SD = 0.58). The study underscores the need for curriculum integration of digital and AI competencies to foster agro-entrepreneurship and support Nigeria’s economic diversification agenda. Implications for policy and agricultural education are discussed. The authors recommends integrating mandatory AI and digital literacy modules into agricultural curricula while fostering industry partnerships for hands-on mentoring. It also called for expanded, longitudinal research to evaluate the long-term impact of these technological skills on agricultural entrepreneurship.