AI Literacy: Driving Trust in AI Adoption

At the enterprise level, 62% percent of leaders emphasize that AI literacy is vital for their teams' daily operations. Understanding AI has shifted from a mere “nice to have” to a necessity. As one of the top five fastest-growing skills sought by leaders when hiring, AI literacy is critical. Without it, employees risk losing their competitive edge in this rapidly evolving digital landscape.

The term "AI Literacy" has taken on different meanings depending on the context—whether in education, AI Regulation (like the EU AI Act), within enterprises, or when referring to end users. This blog post explores what AI Literacy means when applied in  these various contexts, and suggests how to advance a clearer strategy to address and close the AI literacy gap for both enterprises and individuals.

Why is AI Literacy Critical?

Suresh Venkatasubramanian, a Computer Science professor at Brown University, aptly states: “[AI] covers everything in your life. Just by virtue of that, you should care.” As AI innovation advances rapidly, concerns about its impact are growing just as quickly. According to the Pew Research Center, public concern now outweighs excitement about AI's integration into daily life. This highlights the need for both organizations and individuals to be equipped to mitigate potential risks while maximizing AI's benefits.

AI literacy plays a crucial role in fostering trust in AI systems by establishing a foundation of transparency, fairness, and responsible use. A solid understanding of AI's capabilities and limitations is essential for informed decision-making and ensuring that AI technologies are aligned with societal values. Without widespread AI literacy, there is a significant risk of these systems being misunderstood, misused, or mistrusted, ultimately limiting their potential to contribute positively to society.

‍

AI Literacy Across Jurisdictions

Article 3 of the EU AI Act, “definition” 56,  defines AI literacy as: the skills, knowledge, and understanding that enable individuals, whether providers, deployers, or those affected by AI systems, to make informed decisions about AI deployment. This concept includes awareness of the opportunities and risks associated with AI and the potential harm it can cause.

On a broader level, AI Literacy can be applied  to skills, knowledge, and understanding about more than just AI deployment. The proposed U.S. AI Literacy Act, introduced in Congress in 2023, focused not only on technical training, but also on “comprehensive education about the potential benefits and risks associated with AI technologies”. Although this legislation did not pass the U.S. Congress, it included a broader regulatory outlook on “AI literacy” and emphasized the importance of diverse stakeholder engagement using AI literacy initiatives. Moreover, global initiatives, such as the UN’s Interim Governing AI for Humanity Report, also emphasize investing in AI literacy, with proposed efforts spanning technical skills and ethical, legal, and societal considerations. 

The discussion of AI literacy in regulatory bodies across borders highlights its increasing relevance worldwide. At Credo AI, we also believe that different fields and sectors require tailored approaches to address unique and contextual challenges and opportunities.

AI Literacy Across Contexts

The meaning of AI literacy also varies depending on the context. Grasping its definition within specific domains is crucial for identifying both challenges and opportunities. In the following sections, we delve into what AI literacy entails in education, public policy, and within the enterprise.

Education: Preparing the Next Generation

In education, AI literacy goes beyond teaching students how to use AI tools; it encompasses empowering students and educators with the knowledge and skills necessary to engage with AI technologies responsibly. For students, AI Literacy involves understanding the broader societal implications of AI, including foundational concepts and ethical implications that will influence their future careers. Conceptualizing AI literacy: An Exploratory Review by Ng et al. categorizes AI Literacy for students into three areas: 

• the ability to know and understand AI, 
• use and apply AI; and, 
• evaluate and create AI.

For educators, the U.S. Department of Education emphasizes the importance of collaboration between developers and educators to promote AI literacy, suggesting that educators should be familiar with data governance, transparency, fairness, privacy, and other critical aspects of AI to effectively integrate AI-related topics into their curriculum.

A multidisciplinary approach to AI literacy in education, as noted in the UN’s Interim Governing AI for Humanity report, will ensure that future AI leaders are not only technically proficient but also aware of the broader societal impacts of AI. 

Public Policy: Shaping the Future of AI Governance

In Public Policy, AI literacy can lead to better informed policymaking, and the responsible adoption of AI tools within government. The rapid integration of AI into public sector functions such as healthcare, law enforcement, and public procurement necessitates that policymakers have a foundational understanding of AI. 

The U.S. Executive Order 14110 requirement for federal agencies to designate a Chief AI Officer and the European Commission's requests for national governments to appoint AI regulators both underscore this growing need for AI talent within the public sector. 

Enterprises: Staying Ahead

AI literacy is crucial for enterprises to remain competitive while ensuring responsible deployment. For enterprises that both develop and use AI, AI literacy involves having deep technical knowledge to effectively address challenges such as data quality, algorithmic fairness, and mitigating biases in AI systems.

For enterprises, AI literacy can also refer to an understanding of how AI technologies can be leveraged to drive efficiency, innovation, and strategic advantage. Enterprises are often interested in better understanding how their own employees are using AI, successful “prompts” that can be leveraged at the enterprise-level (beyond just individual employees), and areas or specific tasks that can be “AI-enabled,” such as: 

• customer service, 
• marketing, 
• human resources, 
• supply chain management, and 
• creating content. 

AI literacy for enterprises is not just an individual’s level of knowledge or competency in areas such as computer science and data management, but also about recognizing the potential of AI to transform business models, create new value propositions, and reshape industries. The EU AI Act mandates AI literacy by requiring AI deployers to ensure their staff possess sufficient technical knowledge, experience, and training tailored to their specific AI systems. 

Beyond the EU AI Act, understanding and complying with AI regulations –whether sector specific or not– will require that enterprises invest in AI literacy. For example, NYC Local Law 144 required enterprises to publish annual  bias audits of their AI systems, which predicated on the ability of the enterprise to know how to identify, measure, evaluate and mitigate bias. Similarly, Colorado's AI Act will require companies to assess the risk of discrimination from their AI systems across all sectors –also predicated on some level of AI literacy on the part of the enterprise. Regulatory compliance with AI policies increasingly requires enterprises to ensure their employees and enterprises are “AI literate.” 

Credo AI Can Help

AI literacy is not a skill limited to the tech industry. Understanding AI, its risks, limitations, and opportunities is the only way to ensure responsible use and compliance with legal and ethical standards to ultimately build and maintain trust. 

Organizations and individuals must invest in AI literacy education and training to understand and stay ahead of the rapidly evolving AI landscape —harnessing AI's potential while ensuring that systems are transparent, responsible, and ethical.

Credo AI’s AI Governance Advisory directly addresses the urgent need for practical, up-to-date AI Governance education for organizations. With our training program and advisory services, you can develop the AI Governance capabilities necessary to use Al safely and responsibly, while staying aligned with the latest regulations, standards, and best practices.

If this is a need for your organization, contact our team today at advisory@credo.ai