Generative AI as a catalyst for pedagogical transformation in higher education: fostering 21st-century competences in initial teacher training

Purpose This study explores how structured engagement with generative artificial intelligence (GenAI) may support the development of transversal and 21st-century competences in initial teacher training. Specifically, it examines pre-service teachers' perceptions of how AI-based tools relate to creativity, critical thinking, problem-solving, collaboration, digital literacy, and AI literacy. Design/methodology/approach A qualitative interpretative case study was conducted at a public higher education (HE) institution in Portugal, involving 78 undergraduate students enrolled in an initial teacher training program for early childhood and primary education. Participants worked collaboratively in nine groups and used customized versions of Google Gemini to design, adapt, and evaluate educational resources and lesson plans. Data consisted of nine collective reflective reports and were analyzed using thematic analysis. Findings Across the collective reports, the groups associated AI-supported learning activities with collaboration, creativity, critical reflection, problem-solving, and digital literacy. The reports also indicated greater awareness of ethical issues, including bias, reliability, and responsible technology use. At the same time, the groups identified challenges related to uneven digital competence, institutional readiness, and the pedagogically appropriate integration of AI tools. Research limitations/implications The study draws on collective self-reported reflections from a single institutional context, which limits the potential transferability of findings. Future research should incorporate longitudinal and cross-institutional designs, together with additional data sources, to examine the development of AI literacy and professional competence over time. Practical implications The findings highlight the need to embed AI literacy within teacher education curricula through structured opportunities for critical, ethical, and creative engagement with AI technologies. Teacher education programs should provide appropriate pedagogical scaffolding to support equitable participation and responsible AI use. Originality/value This study contributes to rethinking HE pathways by examining how five transversal competences intersect with four dimensions of AI literacy in a structured GenAI-supported teacher training experience. By connecting creativity, ethics, and digital innovation, it provides an analytical lens for integrating AI into teacher education in alignment with contemporary educational challenges and Sustainable Development Goals, particularly SDG 4 (Quality Education) and SDG 10 (Reduced Inequalities).