Understanding student artificial intelligence (AI) literacy in the context of higher education is crucial as technology advances and AI use increases. The purpose of this study is to better understand how university students perceive, define, and apply AI literacy within their own educational experiences and from their own disciplinary lens. Collecting electronic survey responses from 130 graduate and undergraduate students across several disciplines including First-Year Writing, Communication Studies, and Education, this study attempts to elucidate how students articulate and perceive their own degree of AI literacy—Access, Understanding, Critical Thinking, Application, and Ethics—in the educational context. Overall, students reported infrequent use, using ChatGPT most often. Education students reported a lower understanding of AI than non-education students. Undergraduates reported higher rates within ethics than graduate students. No significant differences in AI literacy were found between students who were or were not first-generation students, students who did or did not receive financial aid, or by gender. Students reporting higher rates of use also reported higher rates of AI literacy. Crucially, this study provides key qualitative and quantitative insights exploring how students perceive their own AI literacy. Understanding the current state of students’ AI literacy is important to facilitating holistic student success in academic environments and career readiness as institutions of higher education adapt and prepare curricula, programs, and interventions addressing AI literacy across disciplines.

The rapid assimilation of Artificial Intelligence technologies into various facets of society has created a significant educational imperative that current frameworks are failing to effectively address. We are witnessing the rise of a dangerous literacy gap, where a focus on the functional, operational skills of using AI tools is eclipsing the development of critical and ethical reasoning about them. This position paper argues for a systemic shift toward comprehensive AI literacy that centers human agency - the empowered capacity for intentional, critical, and responsible choice. This principle applies to all stakeholders in the educational ecosystem: it is the student's agency to question, create with, or consciously decide not to use AI based on the task; it is the teacher's agency to design learning experiences that align with instructional values, rather than ceding pedagogical control to a tool. True literacy involves teaching about agency itself, framing technology not as an inevitability to be adopted, but as a choice to be made. This requires a deep commitment to critical thinking and a robust understanding of epistemology. Through the AI Literacy, Fluency, and Competency frameworks described in this paper, educators and students will become agents in their own human-centric approaches to AI, providing necessary pathways to clearly articulate the intentions informing decisions and attitudes toward AI and the impact of these decisions on academic work, career, and society.