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The rapid evolution of novel technologies, such as generative Artificial Intelligence (AI), has created a demand for advanced competencies among public sector employees, particularly educators. AI literacy is emerging as an essential skill set for effectively navigating and utilising AI technologies, while social-emotional competencies (SEC) are increasingly recognised for their critical role in fostering cognitive and non-cognitive outcomes in education. This narrative literature review examines the intersection of AI literacy and SEC, proposing an integrated framework to create a supportive, technologically adept, and emotionally intelligent educational ecosystem. The review identifies three key themes through thematic analysis: AI's transformative potential in reshaping educational practices, its influence on educational providers and stakeholders, and the ethical considerations of AI integration in education. The findings indicate that integrating AI literacy with SEC can enhance educational outcomes by promoting personalised learning, fostering collaboration, and addressing ethical challenges. By equipping educators and students with both technological and emotional intelligence, this framework supports a holistic approach to skill development, preparing stakeholders for a future where digital and relational competencies are equally valued in navigating the complexities of an interconnected world.