Over the past 35 years, workplace technology has evolved through innovations such as the internet, cloud computing, big data and virtual reality. Employees have continually adapted to new tools and technologies to remain effective in their jobs. Today, artificial intelligence (AI) represents the next major shift in the workplace.
Ask a room full of employees whether AI is impacting their jobs and most will likely say “yes.” Ask the same group to define AI literacy, however, and the answers may vary widely. While interest in AI continues to grow, many employees still struggle to understand how AI works and how to use it effectively. A recent Forrester study found an “alarming lack of proficiency” in workers’ understanding of artificial intelligence. If AI literacy is becoming an essential workplace skill, what exactly does it mean and why does it matter?
What is AI literacy?
The importance of AI literacy has grown to the point that the U.S. Department of Labor recently published a national AI Literacy Framework to help guide workforce development efforts across industries. A common definition of AI literacy is the ability to understand what artificial intelligence is, how it works at a basic level, where it is being used and how to evaluate its outputs responsibly.
AI literacy helps employees understand how AI can improve productivity by saving time on routine tasks. Employees who use AI effectively may complete work more efficiently, allowing them to focus on higher-value activities that contribute to organizational goals. Employees who understand how AI works are better positioned to identify opportunities to save time, improve the quality of their work and make more informed decisions.
AI in everyday work
AI is already being used to complete everyday tasks in many workplaces. An employee preparing a report might spend hours organizing notes, reviewing information and drafting a summary. An AI tool can generate a draft in minutes, significantly reducing the time required to complete the task. However, AI-generated content is not always accurate and should be carefully reviewed before use.
Many workplace applications include AI-powered features. Email programs can help draft messages, while spreadsheet tools can summarize, organize and analyze data. For example, an employee might ask an AI assistant to identify trends in a sales report or summarize key findings from a large dataset. Although these tools can improve efficiency, human judgment remains essential for verifying results and making informed decisions.
The growing demand for AI literacy
Employees who ignore AI literacy may find themselves at a disadvantage as organizations continue to integrate AI into everyday work. Without a basic understanding of AI, workers may miss opportunities to improve productivity, struggle to evaluate AI-generated information or fall behind as employers increasingly seek AI-related skills.
According to LinkedIn’s 2025 “Skills on the Rise” report, AI literacy was identified as the fastest-growing skill in the United States. The finding reflects the growing demand for employees who can use AI effectively, evaluate their outputs and apply it responsibly in the workplace. As AI becomes more common across industries, understanding how to work with these tools is quickly becoming a valuable professional skill.
Building AI literacy
Employees do not need to become programmers or technology experts to begin building AI literacy. One of the simplest ways to get started is to use AI tools to support everyday tasks such as drafting emails, creating reports, summarizing meeting notes, conducting research or organizing data.
For example, an employee might use an AI tool to draft an email, summarize a lengthy document or generate ideas for a presentation. While these tools can save time and increase productivity, users should always verify information, review AI-generated content for accuracy and ensure that sensitive or confidential information is managed appropriately.
Developing AI literacy is an ongoing process. The goal is not to know everything about artificial intelligence, but to develop enough knowledge to use these tools effectively, responsibly and with confidence. Like any skill, AI literacy improves through curiosity, practice and experience.
As a first step, choose one routine work task this week and experiment with an AI tool. Ask it to summarize a document, draft a response to an email or help organize information for a project. Pay attention to both the value it provides and the mistakes it makes. Learning to recognize both strengths and limitations is an important part of becoming AI literate.
What’s next?
At its core, AI literacy is not about technology; it is about applying human judgment when using technology. Understanding what AI is, where it is being used and how to evaluate its outputs responsibly provides the foundation for working effectively in an AI-enabled world.
Understanding AI is just the beginning. The next challenge is learning how to work alongside AI in ways that improve productivity, support better decision-making and create meaningful results. Next, we’ll explore AI fluency and what it means to move from understanding AI to using it confidently and effectively in everyday work.
Until then, consider this question: If AI became a standard tool in every workplace tomorrow, would you feel prepared to use it?
Featured image by Gerd Altmann from Pixabay
Edited by Nancy Martin & James Sutton
