Why AI literacy is crucial for safe, inclusive and strategic AI transformation

Artificial general intelligence (AGI) has been the buzzword until recently, indicating that artificial intelligence (AI) is on its way to achieving human intelligence on all dimensions.

While the actual definition of AGI remains debated, attention is already shifting to artificial superintelligence (ASI), which could far exceed human capabilities.

Regardless of future scenarios, today’s breakthroughs, particularly in generative and agentic AI, are reshaping the economy, society and multiple industries at unprecedented speed. Navigating this transformation requires strategic foresight and a human-centric approach.

AI is transforming how we access, process and apply information – reshaping how we learn and build expertise. As such, AI literacy is essential for IT professionals and for enhancing human intelligence overall. But what does AI literacy actually entail in business, education and societal contexts?

The new AI Literacy Framework, developed by the European Commission and Organization for Economic Co-operation and Development (OECD), outlines essential skills to help individuals navigate an AI-driven world with confidence, including:

The relevance of AI literacy is also evident in education. Earlier this year, the United States and China made AI mandatory in the school curriculum to increase early AI literacy.

In 2024, the United Nations Educational, Scientific and Cultural Organization (UNESCO) launched AI Literacy and the Digital Divide initiatives worldwide. The Stanford Human-Centered Artificial Intelligence 2025 AI Index Report also reveals that AI and computer science education are expanding globally, yet gaps in access and readiness persist.

As the World Economic Forum’s Future of Jobs Report 2025 outlines, AI is expected to disrupt nearly every industry, augmenting the required skillsets across global labour markets.

Importantly, the report also highlights the opportunity to shape the future of work for better outcomes, and the Forum is actively supporting the building of a future-ready, inclusive workforce through human capital flagship initiatives, such as the Reskilling Revolution.

At the same time, companies are responding to this highly dynamic and rapidly changing environment by investing in the digital upskilling of their workforce in data, AI and digital technologies to enable and drive safe AI experimentation and accelerate innovation.

McKinsey research indicates that GenAI is expected to contribute between $2.6 trillion and $4.4 trillion annually to the global economy. Companies using AI are expected to increase their workforce performance by up to 40%.

AI literacy is now essential in every industry. To ensure its safe and human-centric cross-sector deployment, the European Commission has introduced mandatory AI literacy requirements at corporate and institutional levels in the context of the AI Act. But what are the key domains where AI literacy is fueling digital transformation and return on investment (ROI)?

​​AI amplifies human intelligence by uncovering patterns in vast data sets. AI literacy empowers employees to select the appropriate tools and utilize them effectively. Understanding AI’s strengths and limits is essential for solving problems, anticipating needs and making informed strategic decisions.

A strong foundation in AI empowers employees to innovate, experiment and develop solutions, fostering creativity. Organizations with high AI literacy are better equipped to spot opportunities, driving competitiveness, market leadership and long-term success.

AI literacy bridges gaps between technical and non-technical teams, improving communication and collaboration. It also equips organizations to adapt to rapid advancements, integrate new technologies and deliver AI projects more effectively in a fast-changing landscape.

A solid understanding of AI – its tools, risks and implications – helps ensure its safe, transparent and trustworthy use. When aligned with societal values and regulations, AI fosters digital trust among stakeholders. Prioritizing AI literacy supports confident and scalable adoption, boosting ROI, customer retention, employee satisfaction and overall performance.

AI literacy is essential for enabling a safe, successful and sustainable AI transformation, especially as AI agents increasingly take on tasks once reserved for humans. With foundational skills and understanding, individuals can drive innovation and strategic growth within organisations, ultimately benefiting society.

By connecting technical and non-technical stakeholders, AI literacy promotes cross-functional collaboration and facilitates the smoother integration of AI into business and institutional processes. Drawing on the holistic vision championed by the Massachusetts Institute of Technology, it empowers people to become responsible engineers, creative problem solvers and informed advocates for ethical AI.

This is a shared responsibility between the public and private sectors, requiring collective action to ensure that AI serves humanity. As we delegate more human autonomy to AI, it is crucial to embed AI literacy through clear, actionable strategies – enabling broad participation in a digitally evolving society.

Public policy must address key issues, such as privacy, digital citizenship and the future of work. The Forum is committed to advancing AI literacy in workplaces and education, helping shape an inclusive, responsible and bright AI-infused future.