According to a 2020 paper by Long & Magerko, who synthesized a variety of interdisciplinary literature into a set of core competencies, AI literacy is the ability to:
Being “AI literate” is the ability to understand, use, and reflect critically on AI applications without necessarily being able to create and develop AI models like someone with a computer science background. Understanding how to use AI as a tool to enhance your work is how you become AI literate.
Within education, AI literacy is a tool to enhance learning and, like all tools, needs to be used in a ethical and responsible way.
Many univeristies have created resources for their community on AI tools. Some are linked below.