What it means

AI literacy is the knowledge, skills and understanding people need to use AI systems appropriately, assess their outputs critically and understand their opportunities, limits and risks. It varies by role, from basic awareness for all staff to deeper skills for those who design, buy or oversee AI.

Real-world example

A regional government runs a three-level AI literacy programme: a 90-minute introduction for all employees covering what AI can and cannot do and the rules for using approved tools; practical workshops for teams using AI daily; and in-depth training on risk, procurement and oversight for project leads and managers.

Why it matters for AI adoption

Tools alone do not create value or safety; people's understanding does. AI literacy reduces both over-reliance and unnecessary fear, and supports better decisions about where AI fits. Article 4 of the EU AI Act addresses AI literacy; its wording was changed by the 2026 AI Omnibus amendment, so check the current text for what it requires of your organisation.

Questions to ask

  • What do different roles in our organisation need to know about AI, and how will they learn it?
  • How do we know whether training has changed how people actually use AI?