Incorporating Industry 4.0 technologies in higher education is crucial for preparing future engineers in a digitalized industrial environment. A challenge-based educational model and the agile Scrum methodology were implemented to move in this direction, combined with the use of Industry 4.0 technologies. New physical and virtual laboratories were enabled with Industry 4.0 hardware/software equipment. The engineering academic programs at the second-largest university in Chile were modified, and all the academic staff involved were trained. Based on conducting challenges that Industry 4.0 technologies can address, this study presents the results of implementing a new educational model and students’ response to freely adopting new technology, such as artificial intelligence (AI), the Internet of Things (IoT), and collaborative robotics. The results showed a high rate of acceptance and use of 4.0 technologies by the students, so the proposed methodology could be extrapolated to other engineering programs worldwide.