What You Need to Know About AI Literacy 

As of February 2, 2025, the Artificial Intelligence Act mandates that (government) organisations, must actively foster AI literacy among their staff. Ensuring that employees who work with AI possess adequate knowledge is essential for the responsible use of this technology. But what does AI literacy entail? What actions can your organisation take to comply with this requirement?

What is AI literacy?  

AI literacy refers to the knowledge and skills related to Artificial Intelligence (AI). It encompasses an understanding of how the technology works at a basic level, its potential benefits, and the associated risks. This concept goes beyond just technical knowledge; it also includes awareness of social, ethical, and practical aspects. For organisations in the public sector that provide or deploy AI systems, the AI Act (Article 4) requires them to ensure that a sufficient level of AI literacy is maintained.

How does AI literacy affect your organisation? 

Organisations have to foster a sufficient level of AI literacy among their employees. However, the required level of AI literacy will vary depending on the context in which the AI application is utilized, such as the industry or the specific nature of the job. For example, developers who are building AI models will have different needs than the management team overseeing them.

The objective is to ensure that everyone interacting with AI systems within the organisation can make informed decisions regarding their use. Organisations should conduct an inventory of the AI systems currently in use and assess the existing knowledge base. Based on this inventory, they could implement the following measures: 

• Ensure that employees involved in developing or procuring AI systems have a thorough understanding of how the systems operate and the potential risks they pose.
• Ensure that employees responsible for using specific AI systems are well-informed about their applications and the potential risks involved.
• Provide all employees dealing with AI systems with a foundational understanding of AI and algorithms. Additionally, emphasise the importance of discussing the ethical and social implications, including potential risks and opportunities, to promote the responsible use of AI systems.

How to integrate AI literacy into your workflows?  

To enhance AI literacy within your organisation, consider the following approaches:

• Highlight the requirements of the AI Act regarding AI literacy to raise awareness about its significance.
• Incorporate AI literacy into the terms and conditions of procurement (example in Dutch) as a standard practice. For example, you can require a mandatory user manual as part of the purchase conditions to ensure that all AI systems acquired can be used responsibly by staff.

Best practices 

The European Commission has published a document outlining best practices to foster AI literacy within organisations best practices for fostering AI literacy within organisations. Additionally, a further set of guidelines aimed at helping organisations improve AI literacy will be released by the end of 2025. Organisations have the option to adopt these codes of conduct or develop their own. The European Commission plans to begin evaluations in 2028 to assess the impact of these codes of conduct.

Some government authorities have started actively fostering AI literacy:  

• AI Compass Water Authorities (Dutch): The Dutch Water Authorities have created an AI Compass, which is a governance framework designed to help make informed decisions when applying artificial intelligence.
• Interprovincial Guide Digital Ethics (Dutch): This guide, developed by the Association of Provincial Authorities (referred to as IPO in Dutch), provides information on the values-driven deployment of technology. It includes tools, examples, and tips for responsibly implementing digital technologies.
• Amsterdam’s vision on AI and Digital City Agenda: The City of Amsterdam, in consultation with its residents, has formulated a vision and agenda for the responsible use of AI within the municipality. The emphasis is on the effective deployment of AI and enhancing digital literacy.

Advisory document

They demonstrate that AI literacy varies depending on the context of your organisation and can take different forms. Additionally, the Directorate for Coordination of Algorithms (DCA) at the Personal Data Authority (AP) has issued an advisory document to help organisations get started on developing AI literacy. With the number of AI systems within the government rising rapidly, AI literacy is becoming all the more important. It will provide staff with a degree of protection while encouraging the responsible use of AI.