COMPEL Glossary / ai-literacy
AI Literacy
AI literacy is the degree to which individuals across an organization understand AI concepts, capabilities, and limitations well enough to make informed decisions within their domain and participate meaningfully in AI-enabled work.
What this means in practice
AI literacy is not about everyone becoming a data scientist -- it is about building sufficient understanding at every level: executives who can evaluate AI strategies, managers who can integrate AI into operations, and frontline workers who can interpret AI outputs and provide valuable feedback. Organizations with broad AI literacy realize significantly more value from AI investments because adoption happens when people understand what they are adopting. In the COMPEL maturity model, AI Literacy and Culture is Domain 3 in the People pillar, assessed from Level 1 (no understanding, perceptions shaped by media) through Level 5 (AI literacy indistinguishable from general business literacy).
Why it matters
Organizations with broad AI literacy realize significantly more value from AI investments because adoption happens naturally when people understand what they are adopting. When executives, managers, and frontline workers lack sufficient AI understanding, the result is poor strategy decisions, resistance to AI-enabled change, and inability to interpret AI outputs effectively. AI literacy is the invisible infrastructure that determines whether technology investments translate into organizational capability.
How COMPEL uses it
AI Literacy and Culture is Domain 3 in the People pillar, assessed on a maturity scale from Level 1 (no understanding, perceptions shaped by media) through Level 5 (AI literacy indistinguishable from general business literacy). The Calibrate stage measures current literacy levels, the Organize stage designs training programs to address gaps, and the Produce stage delivers targeted literacy initiatives. The Learn stage measures literacy improvement as a leading indicator of transformation sustainability.
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Related Terms
Other glossary terms mentioned in this entry's definition and context.