As artificial intelligence becomes more common in education, AI literacy is no longer something optional. It is turning into an essential competence that both teachers and students need. In this paper, I try to explain what AI literacy means, what its main components are, and why it should be considered a key requirement in today’s learning environments. Based on recent research, I argue that AI literacy is not only about knowing how to work with digital tools. It also requires the ability to understand how AI systems operate, to question their outputs, and to use them in an ethical and responsible way. The discussion also presents several recommendations for teacher training, curriculum development, and school-level policies so that AI literacy can grow naturally as part of modern education.