The integration of artificial intelligence (AI) and smart computing tools into education has opened new possibilities for transforming foreign language instruction, particularly in developing regions. This study presents a case analysis of Gjirokastër County in Albania—a culturally and economically significant area where multilingual proficiency is critical due to the role it currently has as a UNESCO listed tourism hub. Drawing on education data, field insights, teacher and student surveys, and platform evaluations, this paper assesses the technological landscape in Gjirokastër’s public schools. It identifies critical gaps in the use of AI-powered tools such as speech recognition, intelligent tutoring systems, and adaptive feedback applications. The study highlights the need for a framework that integrates AI and mobile-assisted language learning (MALL) technologies to personalize instruction, increase learner engagement, and address infrastructure deficits in under-resourced schools. Survey results and interviews with teachers and students show strong support for digital tools in education but also reveal systemic barriers—such as poor infrastructure, lack of training, and rigid curriculum structures—that prevent their effective adoption. Over 80% of the interviewees highlighted the importance of advancing the digital transformation of Albania’s educational system, particularly with regard to foreign language education. The findings underline the urgent need for digital adaptation in language education and offer practical recommendations to bridge the gap between traditional instruction and emerging technological trends.