In the rapidly evolving digital landscape, Artificial Intelligence (AI) is reshaping how decisions are made, problems are solved, and strategies are executed across sectors. As such, developing AI literacy has become a critical core competency for future leaders. This paper explores the concept of AI literacy beyond technical understanding, emphasizing the strategic, ethical, and human-centric dimensions leaders must grasp to thrive in AI-integrated environments. It argues that AI-literate leadership entails the ability to interpret, evaluate, and responsibly integrate AI tools in ways that enhance decision-making, foster innovation, and promote inclusive growth. Drawing from interdisciplinary literature, real-world case studies, and emerging frameworks, the study proposes a holistic model for embedding AI literacy into leadership development programs. The findings underscore the urgency of equipping leaders not only with digital fluency but with a critical mindset capable of navigating the opportunities and challenges posed by AI. Ultimately, cultivating AI literacy is not optional — it is essential for leaders aiming to remain relevant, responsible, and resilient in the Fourth Industrial Revolution.
Nyakora et al. (Wed,) studied this question.