AI Literacy in Achieving Sustainable Development Goals: The Interplay of Student Engagement and Anxiety Reduction in Northern Cyprus Universities

Technological development in artificial intelligence (AI) has significantly transformed the learning context, and university-level students are now required to possess AI literacy. Effective research, however, has not been conducted to study factors influencing AI literacy. Grounded in engagement theory, self-efficacy theory, and transactional distance theory, this research investigates how anxiety, self-efficacy, and AI literacy are associated among Northern Cyprus University students. A cross-sectional survey was conducted, gathering data from 222 participating students from different universities in the region. Findings indicate that for university students in Northern Cyprus, student engagement significantly influences AI literacy. Also, the relationship between student engagement and AI literacy is mediated by anxiety reduction, which denotes that higher engagement decreases anxiety, enhancing AI literacy. Moreover, it is found that self-efficacy mediates the relationship between student engagement and AI literacy, which indicates that higher levels of engagement result in higher levels of self-efficacy, resulting in higher levels of AI literacy outcomes. Smart PLS 4 structural equation modeling (SEM) was used in data analysis and gaining meaningful insight into these relationships. The study contributes to Sustainable Development Goals (SDGs) 3 and 4 through the facilitation of mental well-being and inclusive quality education via improved AI competencies, proposing evidence-based perceptions into how engagement, anxiety reduction, and self-efficacy boost well-being and education. The findings of the study will enable educators, policymakers, and curriculum developers to design curricula and educational strategies that reduce anxiety, strengthen the self-efficacy of learners, and thereby strengthen their AI literacy level.