Universities and professional schools are expanding immersive simulation platforms that combine virtual reality, augmented reality and AI-driven avatars to train students in high-stakes, low-frequency scenarios. Medical schools such as the Illinois College of Osteopathic Medicine and platforms like DDx by Sketchy are testing AI patient avatars for competency-based assessments; business and marketing programs use role-play simulations to build communication and leadership skills. Educators say simulations speed skill acquisition and allow repeatable, low-risk practice for HALO (high-acuity, low-occurrence) events and other professional tasks. Adoption raises questions about faculty training, rubriced assessment, and equitable access, but institutions view immersive tech as a strategic lever to strengthen workforce readiness and competency-based credentialing.