The study focuses on the declining admission trend in instructor-led synchronous diploma programs in Canada to explore external and internal factors influencing this trend. The paper also suggests an AI design and analysis to attract students to mitigate the declining trend in the Canadian diploma education programs. Internal factors included legacy curriculum design and delivery methods. External factors include AI-powered learning management system (LMS) of AWS, Cisco, Microsoft, Udemy and Coursera. The research aims to investigate the impact of internal and external factors contributing to the declining admission trend in Canadian public diploma education institutions, focusing on IT-related diploma programs. It also aims to propose advanced AI-powered teaching and learning strategies to incorporate in the existing learning systems to address this challenge. Additionally, AI design analysis tools and techniques were used to transform AI-proof into AI-powered learning and teaching systems to attract more students to instructor-led synchronous diploma programs in Canada. The research contributes to understanding the complexities of declining admissions in Canadian public diploma education institutes and provides insights into the intersection of technology, education, and industry demands. Recommendations for curriculum and delivery design were proposed to enhance student interest in IT-related diploma programs. Data was collected through various local, national, and international resources. Qualitative, quantitative, and mixed analysis techniques were employed. The research findings highlight the importance of adapting teaching and learning strategies to align with industry demands and technological advancements to address declining admissions in Canadian public diploma education institutes.