AI Literacy in Higher Education: Concepts, Competencies, and Future Directions

Artificial intelligence (AI) literacy has become an essential competency for higher education as generative AI transforms teaching, learning, research, and assessment. This study examines AI literacy through a Systematic Literature Review (SLR) using the PRISMA 2020 framework. Studies published between 2020 and 2025 were systematically collected and synthesized using a framework-based thematic analysis. Five themes emerged: the evolution of AI literacy, conceptual frameworks, core competencies, educational implementation, and future research directions. The findings indicate that AI literacy extends beyond technical knowledge by integrating critical evaluation, prompt literacy, ethical reasoning, responsible AI use, and human–AI collaboration. Universities increasingly embed AI literacy into curricula, faculty development, and institutional policy to prepare graduates for AI-enabled environments. The review highlights responsible governance, interdisciplinary education, and lifelong competency development as priorities for advancing AI literacy in higher education.