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Starting from AI's inception to its current pervasive role in education, everyday life, and beyond, this paper explores the relevance and complexity of AI literacy in the modern world. To evaluate the current state of the literature on AI literacy, a systematic literature review was conducted with the objective of identifying thematic and recent research trends. Through a rigorous selection process involving 323 records from databases such as Web of Science, SCOPUS, ERIC, and IEEE Xplore, 87 high-quality studies have been analysed to identify central themes and definitions related to AI literacy. Our findings reveal that AI literacy extends beyond technical proficiency to encompass ethical considerations, societal impacts, and practical applications. Key themes identified include the ethical and social implications of AI, AI literacy in K-12 education, AI literacy curriculum development, and the integration of AI in education and workplaces. The study also highlights the importance of AI literacy models and frameworks for structuring education across diverse learning environments, as well as the significance of AI and digital interaction literacy. Additionally, our analysis of publication trends indicates a strong growth in AI literacy research, particularly in China and the United States, reflecting the global urgency of addressing AI literacy in policy and education. Conclusively, the research underscores the importance of an adaptable, comprehensive educational paradigm that incorporates AI literacy, reflecting its diverse interpretations and the dynamic nature of AI. The study advocates for interdisciplinary collaboration in developing AI literacy programs, emphasizing the need to equip future generations with the knowledge, skills, and ethical discernment to navigate an increasingly AI-driven world.<\/jats:p>","DOI":"10.1007\/s40593-025-00466-w","type":"journal-article","created":{"date-parts":[[2025,3,12]],"date-time":"2025-03-12T12:00:56Z","timestamp":1741780856000},"page":"2616-2666","update-policy":"https:\/\/doi.org\/10.1007\/springer_crossmark_policy","source":"Crossref","is-referenced-by-count":67,"title":["Towards an AI-Literate Future: A Systematic Literature Review Exploring Education, Ethics, and Applications"],"prefix":"10.1016","volume":"35","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-6203-122X","authenticated-orcid":false,"given":"Gabriele","family":"Biagini","sequence":"first","affiliation":[]}],"member":"78","published-online":{"date-parts":[[2025,3,12]]},"reference":[{"key":"466_CR1","doi-asserted-by":"publisher","first-page":"100131","DOI":"10.1016\/j.caeai.2023.100131","volume":"4","author":"C Adams","year":"2023","unstructured":"Adams, C., Pente, P., Lemermeyer, G., & Rockwell, G. 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