What Is AI Literacy? – Artificial Intelligence – Built In

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Artificial intelligence is all around us — screening job applications, flooding social media feeds, assisting doctors with diagnoses and even navigating roads. And yet, despite its pervasive influence, many people still don’t fully comprehend how this technology works or when to trust it. This is where AI literacy comes in.

AI literacy is the ability to recognize, understand and effectively use artificial intelligence across various contexts. It involves equipping users with the knowledge and skills they need to grasp how AI systems function, while also critically assessing their limitations and ethical implications. 

People with strong AI literacy are able to make informed decisions about when, how and why to use artificial intelligence — carefully weighing the benefits of a particular AI-powered tool against its inherent risks. The goal isn’t necessarily to turn everyone into AI experts, but rather to empower everyday individuals to engage with this technology confidently and responsibly.

What Is AI Literacy?

AI literacy refers to an individual’s ability to effectively understand and engage with artificial intelligence across different scenarios. In practice, this means recognizing when AI is at work, making sense of how it operates and critically assessing its potential benefits, limitations and broader impact on society.

Just as digital literacy — the ability to evaluate and communicate information using digital technology — became essential for thriving in the internet age, AI literacy is now crucial for making informed decisions in a society increasingly shaped by data and algorithms. Whether you’re a consumer browsing a streaming service curated by a recommendation engine, a student using an AI-powered writing tool, a politician drafting AI legislation or a data scientist building the next big breakthrough in generative AI, AI literacy is important for everyone. 

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Components of AI Literacy

AI literacy is an iterative process, requiring continuous learning and adaptation. Still, there are several core areas where one can develop a solid comprehension that spans the technical, practical and ethical dimensions of this technology.

Recognizing AI

To meaningfully engage in discussions about artificial intelligence, one must first be able to recognize it in action — whether it’s a customer service chatbot on an e-commerce site or an AI-generated image in a social media feed. Developing this awareness is essential in understanding AI’s growing presence in our daily lives.

Understanding AI’s Capabilities

From there, users should get acquainted with some of the fundamental capabilities of AI, including:

Understanding AI’s Technical Limitations and Functionality

Users should be aware of AI’s many technical limitations and challenges, too including:

• Hallucinations: At times, AI can produce false, misleading or illogical outputs, even though it appears confident in its answer. 
• Bias: AI often reflects the biases present in its training data, which can lead to unfair or discriminatory outcomes.
• Narrowness: All of the AI systems that exist today are designed for very specific tasks, and will struggle when faced with tasks outside of their training or expertise.
• Overfitting: When a model is too narrowly trained on a specific set of data, it will struggle to perform well when it encounters new or different contexts.
• “Black box” nature: Most AI models operate in a way that is hard to interpret or explain, making it difficult to understand how or why they make the decisions they do.

At the same time, users should also do their best to learn how these systems work on a fundamental level. This includes developing a familiarity with key concepts such as:

At the end of the day, artificial intelligence is not just one thing — it encompasses a vast array of approaches, methods, techniques and applications. Gaining a comprehensive understanding of what all these components are, how they work and where they fall short is an important part of AI literacy.

Learning about AI doesn’t have to be difficult, and it doesn’t require a degree in software engineering or data science. There are plenty of online resources, courses, books and podcasts (as well as articles like this one) out there, offering accessible ways for anyone to get a solid grasp of the basics.

Knowing About Practical Applications of AI

Forming a practical understanding of AI means being cognizant of its various real-world applications and knowing when (and when not) to use it based on a solid comprehension of both its technical capabilities and limitations.

It’s about knowing how to effectively apply AI as a tool, whether that’s a business implementing a chatbot to streamline its customer service process, a lawyer leveraging AI to speed up the research process or an average person using AI to organize their email inbox. But it’s also about understanding what could go wrong when using AI — bias, errors, misuse — and weighing those potential consequences against the benefits.

Understanding AI’s Ethical and Social Implications

Artificial intelligence affects more than just individual organization or person using it — it has far-reaching implications for the entire world. AI intersects with critical issues like privacy, employment and climate change. It can be misused in all sorts of ways, from deepfake phishing attacks to large-scale disinformation campaigns. Understanding these broader societal consequences is an essential component of AI literacy.

There is no doubt that artificial intelligence has the potential to do incredible things for humanity, but it is equally important to recognize the risks that come with this progress. Maintaining a well-rounded awareness of these implications — both positive and negative — helps to ensure that it is developed, used and regulated responsibly, in ways that truly benefit society as a whole.

Constantly Learning

The field of artificial intelligence is evolving rapidly, with new advancements, tools, techniques and risks emerging all the time. As this technology becomes more embedded into everyday life, staying informed about the latest developments ensures people are using this technology in the most effective ways. Continuous learning also ensures that users are aware of any emerging ethical concerns, challenges and best practices, helping them to make better, more informed decisions about how they engage with and utilize AI.

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Why Is AI Literacy Important?

Artificial intelligence has the power to transform virtually every facet of society, from business and healthcare to education and the arts. AI is driving innovation, improving efficiency and offering solutions to complex global challenges. But it also poses significant risks, with the potential to upend millions of people from their jobs, exacerbate climate change and erode our ability to trust the things we read and see online. AI literacy empowers everyone to fully grasp all of AI’s complexities — how it works, when to use it and all of its consequences — so they can make more informed decisions about how they implement and interact with this technology in an increasingly automated world.