What is AI literacy and why is it an urgent imperative?
Artificial intelligence (AI) is shaping nearly every aspect of our lives, from hiring decisions and mortgage approvals to search engine and music recommendations. AI is transforming the workplace—according to Microsoft’s 2024 Work Trends Report, 75% of knowledge workers now incorporate AI tools into their jobs.
Despite AI’s growing presence, many people remain unaware of how deeply it influences their daily lives. Even when we are told AI is powering a decision, it is often unclear how or to what extent AI is being used. This uncertainty—combined with the rapid pace of AI innovation—has fueled both curiosity and concern among the public. Over 74% of Americans familiar with AI say they have “very little” or “no” knowledge of generative AI tools, while 55% are “somewhat interested” or “very interested” in learning more, according to Ipsos.
Among younger generations, interest is much greater—another survey found that more than 9 in 10 teenagers want to learn about AI in high school.
If left unaddressed, we could be heading toward a future where AI benefits only a select few, further widening existing socioeconomic and opportunity gaps—a concern of ours recently highlighted by Axios. Without AI literacy, people may either avoid AI tools—missing out on valuable opportunities—or use them without knowing their risks and limitations, increasing the chances of over-reliance and creating unintended harms for themselves and others.
The Need for AI Literacy
Building trust in AI systems requires more than just technological advancements—it requires greater general public understanding and engagement with AI. AI literacy is essential to ensuring that individuals can confidently and critically engage with AI, recognizing both its capabilities and limitations.
The pace of AI innovation has far outpaced the development of educational resources and public awareness campaigns. This lack of foundational knowledge about AI systems and tools has led to misconceptions, fear, and misuse, increasing the likelihood of unintended consequences that affect individuals and society as a whole. If people do not understand how AI functions, they are more susceptible to:
- Misusing AI tools, leading to flawed or harmful outcomes.
- Blindly trusting AI decisions, even when they reinforce flawed data and assumptions.
- Missing out on AI-driven opportunities in education, employment, and everyday life.
AI literacy equips people with the ability to:
- Identify when AI is being used and how it impacts their lives.
- Understand AI’s risks and limitations, enhancing responsible and safe use.
- Maximize AI’s benefits in personal and professional settings.
However, despite the critical need for AI education, formal learning opportunities remain limited. According to Ipsos, most Americans are not learning about AI in structured environments—instead, they rely on self-guided learning, online resources, or informal conversations with friends and family. This raises pressing questions:
- What happens to students who do not have AI education in school?
- How do we reach individuals without access to Wi-Fi or digital resources?
- How do we support busy parents and workers who do not have time to seek out AI literacy training?
Without strategic investment in AI education, we risk creating a divide where only some can harness its benefits. To ensure that individuals and communities across all industries and regions can compete effectively in the AI economy, we must prioritize efforts to make AI literacy widely accessible and actionable.
What Is AI Literacy?
AI literacy is not about turning everyone into data scientists. Rather, it is about ensuring that all individuals—regardless of background or profession—have a basic understanding of what AI is, how it works, and how it affects them.
At its core, AI literacy includes:
- Fundamental AI Knowledge – Understanding how and when to use AI in decision-making, including its strengths and its limitations.
- Critical Thinking Skills – Questioning outputs and evaluating AI-driven decisions.
- AI Risk Awareness – Identifying and mitigating potential harms, while ensuring good AI governance.
- Practical Application – Learning how to use AI tools effectively in work and daily life.
By increasing AI literacy, we can bridge the knowledge gap and empower individuals to participate fully in and benefit from the AI-driven economy. When individuals understand how to leverage AI as a productivity tool rather than fear it as a replacement, they position themselves for higher wages and better opportunities. AI literacy is key to ensuring that AI not only enhances human potential in the workplace but becomes a trusted partner in our professional growth—making workers more productive, more prosperous, and ultimately more valuable in tomorrow’s economy.
As AI continues to shape our future, education and engagement will determine whether these technologies uplift society or deepen existing divides. Investing in and planning for AI literacy is not just a priority—it is an imperative.
