Advances in technology in recent years have changed the learning behaviors of learners and reshaped teaching methods. This had resulted in several challenges faced by current educational systems, such as an increased focus on informal learning, a growing gap of prior knowledge among students in classrooms and a mismatch between individual career choices and the development of the work force. This paper looks at these challenges with a view towards revolutionizing current learning environments to smart learning environments and provides new suggestions for technological solutions. Furthermore, this paper argues for a transformation from the current learning environments to smart learning environments. This is to be achieved by reengineering the fundamental structure and operations of current educational systems to better integrate these new technologies with the required pedagogical shift. The future perspectives of smart learning environments are reviewed and shared, through examples of emerging innovations such as the flipped classroom, game based learning, gesture based learning, along with pedagogical shifts, such as lifelong learning portfolio maintenance, team teaching, and separation of learning and competency assessment.