AI Literacy (AI Literacy)

## What is AI Literacy? AI literacy refers to the collective knowledge and skills required to understand the fundamental concepts, capabilities and limitations, risks, and ethical issues of AI, and to appropriately leverage AI in professional and everyday contexts. ### A Separate Skill from Programming Ability AI literacy is not exclusive to engineers. A sales representative forwarding AI-generated output directly to a customer, or an accounting staff member including unverified AI-aggregated figures in a report—these risks can be prevented not through technical ability, but through knowing "the limitations of AI." ### Mandated by the EU AI Act The EU AI Act, effective February 2025, requires organizations to ensure AI literacy. Providers and deployers of AI systems must establish training frameworks so that employees can perform their duties with a foundational understanding of AI risks. ### A Phased Development Design There is no need to turn every employee into an AI engineer. A three-tiered approach is effective in practice. **Level 1 (All employees)**: Understanding what AI can and cannot do, awareness of hallucinations, and the risks of inputting confidential information **Level 2 (Department leaders)**: Workflow design for AI utilization, ROI evaluation, and foundational knowledge for vendor selection **Level 3 (AI promotion leads)**: Prompt engineering, RAG implementation, and evaluation metric design The author believes the highest ROI comes from rolling out Level 1 company-wide in a half-day training session, then progressively offering Levels 2 and 3 to those who wish to advance.