AI literacy

AI literacy (noun phrase)

(individual)
A person's practical understanding of what AI can and can't do, sufficient to use it effectively and judge its output critically. It's less about technical knowledge and more about calibrated trust — knowing when to rely on an answer and when to check it.
*Example: "Basic AI literacy meant knowing to double-check a generated figure rather than assuming it was accurate simply because it sounded confident."*
(applied collectively)
The same capability, held or cultivated at the level of a team or organization rather than one person. Businesses tend to treat it as something with a floor: "AI literate" names the minimum level needed to work constructively with AI, and organizations invest in training and hiring specifically to clear it.
Example: "The organization lifted its AI literacy through training and hiring practices."