With the adoption of Regulation (EU) 2024/1689 (the ‘AI Act’), European legislators have firstly created a binding legal framework for the risk-appropriate use of artificial intelligence (AI). In addition to technical and organizational requirements, Art. 4 of the Regulation contains an explicit obligation to ensure a sufficient level of AI literacy among those involved in the development, operation and use of AI systems. The obligation applies to providers and deployers of such systems and must be fulfilled “to their best extent”. This Whitepaper provides a systematic analysis and practical operationalization of the AI literacy requirements standardized by Article 4 AI Act. The aim is to provide guidance, particularly for small and medium-sized enterprises (SMEs), on the structured implementation of the regulatory requirements. To this end, the legal basis is thoroughly examined and translated into an integrated competence model that distinguishes between individual (micro-) and organizational (macro-) dimensions. The focus is on a two-stage process model for identifying and developing AI literacy: a bottom-up analysis of individual abilities is systematically combined with a top-down comparison of organizational requirements. In addition, a morphological box for classifying AI-relevant role profiles is introduced, which enables a structured assignment competence requirements and measures. This work thus contributes to the normative, methodological and practical foundation of the obligation to ensure competence in the field of AI established by Article 4 AI Act. It is intended as a guide for corporate and public actors who not only want to meet regulatory requirements but also want to translate them into strategically sound competence development.