AI Literacy: Why Higher Education Institutions Can’t Afford to Wait

Remember when ChatGPT became a household name and shook things up? As everyone was trying to make sense of it, universities and research institutions were in a bit of a frenzy, even going so far as to ban generative AI¹ while they figured out how to handle it. Fast forward three years, and the debate over AI use in research and academia is still very much alive.²

In the meanwhile, students’ use of AI has only continued to grow. According to HEPI and Kortext’s Student Generative AI Survey 2025,³ students using any AI tools for shot up from 66% in 2024 to 92% in 2025 in a single year. The same survey further found that students largely trust institutional controls and say policies are clear. Yet while 67% see AI as essential, only 36% have received formal training, pointing to a gap between institutional guidance and hands-on training.

On the faculty side, the Digital Education Council (DEC) Global AI Faculty Survey⁴ reports that about 64% of faculty at higher education institutions believe AI will change their teaching practice, and 68% expect to use it in the future. At the same time, 83% of faculty expressed concerns that students can’t properly judge AI-generated answers, while many teachers themselves are still beginners with AI and lack clear guidance from their institutions. Together, these trends indicate that rapid adoption has outpaced both training, leaving a gap that institutions are now racing to close.

What does AI literacy entail?

AI literacy can be interpreted in different ways. For some, it could be about teaching students how to use AI tools, while for others, it could be about understanding data ethics. And for some, it may also mean having comprehensive AI policies and being aware of it. While none of these are wrong, they don’t paint the whole picture.

The most way to explain AI literacy⁵ is that it involves a set of skills that help individuals critically evaluate AI, communicate and collaborate with it effectively, and use it responsibly in all areas of life. For instance, a researcher who can efficiently use ChatGPT to produce content but can’t question its origins, assumptions, or errors won’t be considered AI literate. So, what does AI literacy entail? A 2026 article⁵ breaks AI literacy down into seven dimensions in what the authors call the AI Literacy Heptagon.

• Technical knowledge: Understanding the basics of what AI systems and tools are and how they work.
• Application proficiency: Knowing how to use AI tools well across different contexts and adapt them to specific purposes.
• Critical thinking: Being able to analyze and question AI outputs.
• Ethical awareness: Thinking through what AI means for privacy, fairness, and accountability.
• Social impact: Recognizing how AI is reshaping workplaces, relationships, and society more broadly, including both benefits and risks.
• Integration skills: Knowing how to weave AI into existing workflows, not just using it in isolation.
• Legal and regulatory knowledge: Being aware of the rules and laws governing AI, which are still evolving.

Why should higher education institutions prioritize AI literacy?

• Foundation for effective policies: AI literacy gives students the ability to understand how AI works and follow guidelines and policies around it.⁶
• Promotes responsible use: It allows students to use tools appropriately and ethically, preventing overreliance and misuse of AI by being able to critically evaluate AI outputs and identify AI limitations and biases, ultimately upholding academic integrity.
• Reduces confusion: Understanding AI makes students more confident in using it.
• Prepares students for future careers: As AI becomes common in workplaces, students need the skills to understand and work with it.⁷
• Effective human-AI collaboration: AI literacy empowers users to move beyond elementary understanding of AI and engage in meaningful collaboration, using AI as a support rather than replacement for human skills and abilities.⁸

Some universities are already making AI literacy a structural priority. Take, for instance, what Ohio State University is doing by making AI fluency mandatory⁹ for its students, so they are prepared to lead in a workforce where AI affects every career. The initiative brings AI training to the undergraduate experience, ensuring students learn to use AI responsibly within their chosen field, while still maintaining academic integrity. As the university president states, “every job, in every industry, is going to be affected” by AI, highlighting why learning to use it is now essential.

Conclusion

AI is already part of modern research and academic practices. What matters now is ensuring it is being used responsibly and with understanding. AI literacy has a policy dimension that sits at the institutional leadership level. At the Saudi Research Summit 2026¹⁰ hosted by Editage, Prof. Mike Grandinetti from Harvard Business School, in his keynote address¹¹ described the current moment as one of fundamental disruption for academic institutions, cautioning that the education landscape as we know today will look entirely different in just five years. With the stakes this high, educators and researchers must step forward and redefine what institutions need to be in this new era of co-intelligence. And treating AI literacy as a genuine institutional priority will be key for universities to stay competitive as AI capabilities continue to advance.

References

1. 1. Reflection on whether Chat GPT should be banned by academia from the perspective of education and teaching. Frontiers. https://doi.org/10.3389/fpsyg.2023.1181712
2. 2. What faculty want: Key results from the Global AI Faculty Survey 2025. Digital Education Council. https://www.digitaleducationcouncil.com/post/what-faculty-want-key-results-from-the-global-ai-faculty-survey-2025
3. 3. Student Generative AI Survey 2025. Higher Education Policy Institute (HEPI). https://www.hepi.ac.uk/reports/student-generative-ai-survey-2025/
4. 4. Digital Education Council Global AI Faculty Survey 2025. Digital Education Council. https://www.digitaleducationcouncil.com/post/digital-education-council-global-ai-faculty-survey
5. 5. The AI literacy heptagon: A structured approach to AI literacy in higher education. Computers and Education: Artificial Intelligence. https://doi.org/10.1016/j.caeai.2026.100540
6. 6. Why AI literacy must come before policy. Times Higher Education. https://www.timeshighereducation.com/campus/why-ai-literacy-must-come-policy
7. 7. AI literacy in education: Why college campuses must act now. Campus Safety. https://www.campussafetymagazine.com/insights/ai-literacy-in-education-why-college-campuses-must-act-now/170277/
8. 8. AI literacy: A guide for academic libraries. University of New Mexico Digital Repository. https://digitalrepository.unm.edu/cgi/viewcontent.cgi?params=/context/ulls_fsp/article/1211/&path_info=AI_Literacy_Framework___A_Guide_for_Academic_Libraries_Post_Print_12_17_2024.pdf
9. 9. Ohio State University says all students will be required to train in AI. The Guardian. https://www.theguardian.com/us-news/2025/jun/09/ohio-university-ai-training
10. 10. Editage successfully hosted Saudi Research Summit 2026 to advance AI-powered research excellence aligned with Vision 2030. Cactus Communications. https://cactusglobal.com/media-center/editage-hosted-saudi-research-summit-2026/
11.  11. Saudi Research Summit 2026 | AI-powered research excellence. Cactus Communications. https://www.youtube.com/live/R8g8KccclDs