What is AI literacy and how can you build it?

AI literacy means knowing how to use AI tools safely, responsibly and effectively. As AI becomes part of everyday work, employees need more than basic tool access. Under Article 4 of the EU AI Act, organisations that provide or deploy AI systems must take steps to support the development of AI literacy among their staff and other people using AI on their behalf.

Key Takeaways ⓘ

AI literacy is the ability to use AI tools safely, responsibly and effectively. Under the EU AI Act, organisations that provide or deploy AI systems must take steps to support it.

• It combines a basic understanding of AI with practical skills and the judgment to question AI output.
• The main areas are core AI knowledge, critical evaluation, day-to-day AI use and responsible AI use.
• Building it is an ongoing process: companies assess training needs, choose suitable measures and keep skills up to date.

What does AI literacy mean?

AI literacy is the mix of skills, knowledge and judgment people need to use AI tools effectively. It includes a basic understanding of how AI works, what its results can tell you, and where those results may fall short. It also means being able to spot the opportunities and risks associated with different uses of AI. People with strong AI literacy make informed decisions while working with AI and keep ethical, legal and social considerations in mind.

AI literacy also means knowing how to use AI tools in day-to-day work and how to spot potential problems before they become bigger risks. For companies, this also supports compliance with the EU AI Act, which has required organisations to take steps to support AI literacy among employees, contractors and partner organisations that work with or manage AI platforms since 2025.

Why is AI literacy important and who needs it?

AI literacy is essential for using artificial intelligence effectively and is becoming more important as AI tools move into the workplace, public services and everyday life. AI literacy helps employees use these tools safely and efficiently while avoiding risks such as misinformation, bias or poor decision-making. Employers also benefit because better AI literacy helps them comply with legal requirements such as the EU AI Act and reduce liability risks.

Companies should set out practical steps to help employees and other users build the AI knowledge they need and keep track of these efforts. This may include AI literacy training, among other initiatives. It’s worth keeping in mind though that the EU AI Act doesn’t require any specific external certifications or standardised testing. This means what companies need to do will depend on how the AI tools are used, how complex they are and how much employees know already.

In the end, AI literacy helps companies, employees and customers benefit from AI while keeping risks under control.

What does AI literacy involve?

AI literacy is not a single skill – it’s a set of different abilities that work together. These are the main areas:

1. Core AI knowledge: Employees should understand the basics of AI, how it works, what AI algorithms do, which types of tools exist and where they are commonly used. This gives employees a solid foundation for understanding what AI tools can do and how to use them appropriately.
2. Critical evaluation: AI literacy also means knowing when to trust AI output and when to question it. People who use AI tools or make decisions about their use should be able to see where AI can be helpful, where it may create problems and what the consequences might be.
3. Day-to-day AI use: AI literacy also means knowing how to apply AI tools to real tasks. Employees should understand how to write clear prompts, review AI output, protect sensitive data and decide when AI is the right tool for the job.
4. Responsible AI use: Employees should also understand the requirements that apply to AI use, including the EU AI Act. This means they should know which rules apply when using AI tools and how to reduce any potential risks.

How can you build AI literacy?

Building AI literacy is an ongoing process and not a one-time training session. A good first step is to create a solid basis in terms of knowledge. Online courses, workshops, webinars and expert articles can help employees understand the basics of AI and how AI tools work. Employees should also build critical thinking skills by looking at case studies, discussing AI use as a team and engaging with the ethical and legal questions that come with using AI. Hands-on exercises and real workplace examples can also help employees understand how to use AI tools in their daily work and feel more confident doing so.

This means companies should:

• take a closer look at what kind of training people actually need
• figure out who really needs to be involved
• choose measures that actually make sense

These may include introductory workshops, more advanced role-specific training, regular refresher courses and AI literacy training tailored to specific tasks or tools. Internal guidelines, checklists and a dedicated AI lead can also help companies coordinate AI use and make sure employees follow applicable laws, company policies and industry rules.

AI literacy should also evolve as AI tools, workplace practices and regulatory guidance change. Companies can support this through ongoing training as well as input from experts and lessons learned from real-world AI use. This ensures employees use AI tools confidently, effectively and responsibly well into the future.