Embedded systems are defined as the integration of hardware and software designed to perform specific tasks efficiently. Over the decades, embedded systems have evolved significantly, thereby, providing many applications across various domains including consumer electronics, healthcare, automotive, aerospace, and industrial automation. With the advancing technologies, the methods used to teach and learn embedded systems are also transforming. One of the notable developments in this area is the emergence of virtual laboratories. Virtual laboratories are digital platforms that allows learners to perform experiments and simulations without the need for physical lab equipment. These labs provide increased accessibility, flexibility, and cost-efficiency. A significant advancement within virtual laboratories is the integration of artificial intelligence (AI), which has shown how learners engage with complex engineering concepts. This paper shows how AI guided virtual laboratories work specifically for the learner seeking knowledge in embedded systems. AI can guide the learners through experiments, help them to identify and correct the common errors and provide immediate feedback during simulations. In the emerging world, where time is considered the most important aspect of our life, AI guided virtual laboratories not only reduce the error rates but also saves time in the learning process. Therefore, AI supported laboratories promote self-study and build confidence, ultimately preparing learners to work on hardware and industry level projects.