Generative artificial intelligence (GenAI), an evolving subset of artificial intelligence (AI), is reshaping industries and workplace practices, underscoring the pivotal role of higher education in equipping students for success in our dynamic technological landscape. This chapter highlights the importance of preparing students for the profound impact of GenAI within various workplace settings, necessitating a shift in strategy, pedagogy, and support for student employability. Employability fosters agile, ethical, and discerning graduates, and, in recent years, a responsive and expanded concept of employability has encompassed GenAI literacy as a core digital employability competency. This chapter proposes three ways that higher education institutions can prioritise and develop GenAI literacy to boost students’ confidence, competencies, and knowledge upon graduation. These include work-integrated learning pedagogies, industry and university partnerships, and leveraging institutional strategies and resourcing. Failure to integrate the influences and challenges of GenAI into university curricula may leave graduates unprepared, potentially leading to a lack of essential employability skills and falling short of employer expectations.