AI literacy includes a basic understanding of models, training data, prompts, generated output, uncertainty, bias and privacy. A literate user can recognize when a system is being used and ask appropriate questions about its evidence, limitations and incentives.
Literacy is broader than knowing how to operate one product. It helps people evaluate new tools, understand social consequences and make informed choices even as interfaces and model capabilities change.
ELI5
AI literacy is the ability to understand AI well enough to use it thoughtfully and question its output. It includes knowing that models can sound confident while being wrong, may reflect bias and can create privacy risks when given sensitive information.
For example, an AI-literate student can use a chatbot to explore a topic but still verify important claims with reliable sources. The same habits help people judge unfamiliar AI tools even when the products and interfaces change.
What should an AI-literate student know?
A student should understand basic model behavior, common limitations, verification, privacy, bias, attribution and when human expertise or judgment is required.
Is AI literacy a technical skill?
It includes technical concepts, but it also includes critical thinking, ethics, social impact and the ability to evaluate model use in a real context.

