This project focuses on advancing AI literacy as a critical 21st-century competency for both educators and learners. As artificial intelligence becomes increasingly embedded in educational tools and systems, it is essential to ensure that users can understand how AI works, critically evaluate its outputs, and engage with it ethically and effectively. The project aims to explore what it means to be AI literate in educational settings, identify the core knowledge and skills required, and design learning experiences that support the development of these competencies. By doing so, we seek to empower educators and students to become informed users and thoughtful contributors in AI-powered learning environments.