AI Literacy: The new frontier of workforce readiness

Just as traditional literacy once became a fundamental right, AI literacy is now emerging as the foundation of workforce readiness—critical for staying competitive, bridging skill gaps, and nurturing a culture of lifelong learning. To explore how prepared organisations are, People Matters spoke to industry leaders who see AI literacy not as optional, but indispensable.

“Proficiency in AI is no longer optional—it’s vital,” says Sachin Alug, CEO, NLB Services. For him, digital literacy today goes far beyond navigating online platforms. It includes the ability to apply AI responsibly, discern reliable information from noise, protect privacy, and ensure equitable use of technology. “Industries must focus on safe, inclusive, and responsible AI—not just within their organisations, but also in the solutions they deliver to end-users,” he adds. 

Echoing this, Divya Mohan, CHRO, InsuranceDekho, calls AI literacy “as fundamental as reading and writing” in the digital economy. She argues that businesses cannot stop at building AI tools—they must also make them accessible. “That means investing in education, simplifying adoption, and ensuring AI knowledge isn’t confined to tech teams. It must be democratised across roles and regions.” 

For Manish Dodeja, Chief Operating Officer, Care Health Insurance, literacy is about empowerment and informed decision-making. “Just as reading and writing open doors to education, AI literacy has now become critical. The ability to understand, question, and responsibly use AI will define how individuals navigate things—be it insurance, finance, or other daily life requisites in the future,” he notes.  

For Arvind Pandit, Founder and Managing Partner, Ishwa Consulting, AI literacy begins at the top. “Transformation advances only when leaders carry AI literacy themselves,” he says. Leadership searches, he notes, increasingly test for this capability. “The real test is whether leaders can translate AI from hype into daily decisions that make work faster, fairer, and more resilient.”

The urgency of AI adoption is undeniable. But for Alug, the bigger picture is inclusion. “Collaborating with government bodies, academia, and grassroots digital literacy initiatives can pave the way for a more equitable and empowered future,” he stresses. 

At InsuranceDekho, inclusivity has been hardwired into their L&D framework. From self-paced modules on the IDEdge app to on-the-job AI learning, the company ensures access is broad-based. “We design programs that are language-agnostic, mobile-first, and mentorship-led,” explains Mohan. “This allows first-time users—including women, retirees, and youth in smaller towns—to build confidence with AI. Inclusion in AI literacy isn’t just a responsibility; it’s a competitive advantage.”

Pandit cautions, however, against moving too fast at the cost of widening divides. “Speed builds momentum; inclusion builds resilience. Organisations must balance urgency with equity.” He recommends short, high-impact pilots that show quick wins and reduce the fear that often surrounds AI. But he also insists on scaling access: “AI will fail its promise if it remains confined to headquarters or metros. From supervisors in smaller plants to women returning after career breaks, every worker must see a pathway open.”

For him, the true measure of progress is not the number of certificates collected but tangible impact: better service, fewer errors, and wider opportunity. 

Dodeja stresses that at an organisational level, it is not only about equipping employees with AI-related tools and skills to stay competitive but also about building awareness, trust, and accessibility. In a sector like insurance, he sees, AI literacy as an opportunity to improve customer experience by automating tedious tasks, making processes seamless, and investing in long-term inclusive programs that bring AI education to communities where it can become a basic life skill. 

The question is no longer what AI can do but what role we choose for it in society and business. As these leaders emphasise, embedding AI literacy into the workplace is not an option but an imperative—one that shapes not just productivity, but also equity, resilience, and trust. 

On this International Literacy Day, the message is clear: in a world defined by algorithms and automation, AI literacy now stands alongside reading and numeracy as a foundational skill for the future of work.