Why AI readiness requires digital literacy and inclusion

In May, the Trump administration pulled $2.75 billion in funding for the Digital Equity Act, a part of the 2021 Infrastructure Investment and Jobs Act (IIJA) that provided states with funding to expand digital infrastructure and digital access. The IIJA allocated $60 million in grants to help states and territories develop digital equity plans, $1.44 billion to implement those plans, and $1.25 billion for various coalitions and community groups dedicated to bridging the digital divide. Cancelling the digital equity portion of funds outright has not only been called legally dubious but has also jeopardized funding for local organizations that were gearing up to provide Americans with digital literacy training, workforce development programs, technical support, and free or low-cost computers.

Separate from these setbacks, the Trump administration, Big Tech companies, and educational nonprofits have announced million-dollar partnerships and commitments for K-12 literacy and readiness programs related to artificial intelligence (AI), with little indication of more grassroots and community-based alliances. Moreover, the administration’s recent AI Action Plan identifies empowering American workers through AI literacy and skills development as a priority, and two recent executive orders focus on investing in AI education for youth and the workforce. These seemingly contradictory trends raise the question of whether AI readiness can occur without the availability of digital literacy tools and programs that accelerate digital inclusion. 

Digital access is a precursor to AI adoption and use 

The withdrawal of these funds is reflective of the Trump administration’s broader crusade against diversity, equity, and inclusion (DEI) programs, asserting that the Digital Equity Act was part of this movement. To the contrary, the Digital Equity Act has an expansive definition of “covered populations.” The act, as written into law, covers broad segments of the population: low-income, aging, and incarcerated individuals; veterans; people with disabilities or language barriers; members of racial and ethnic minority groups; and rural residents. Yet on Truth Social, President Trump claimed the funding was unconstitutional and “racist,” despite the fact that over 90% of the population in rural states such as West Virginia, Vermont, and Mississippi fall under covered categories eligible for funding. Revoking this funding, which has received bipartisan support, disproportionately hurts Americans who fit the definition of covered populations and face persistent structural barriers to technology access—whether in cost or training. Failing to include those individuals harms our country’s AI readiness and our overall international competitiveness. 

Today’s world requires a range of digital fluency skills, including those such as writing an email, applying for jobs online, accessing needed services, and filing taxes. Yet the digital divide, which co-author Nicol Turner Lee has defined in her book, “Digitally Invisible: How the Internet is Creating the New Underclass,” as a social determinant of quality of life for individuals and communities, persists within both urban and rural areas that consistently lag when it comes to affordable and accessible high-speed broadband access. Central to the divide is a lack of digital skills and knowledge.  

The emerging AI divide 

AI literacy is rapidly becoming a core competency, as many companies already use AI for resume screening, eligibility determinations for housing and financial services, or in education. If individuals are unable to access, adopt, understand, or effectively use AI technologies, there may be major ramifications on their ability to seek employment and engage with an information environment that is increasingly populated by AI-generated content. A recent poll highlighted the uneven early adoption of AI technologies across different demographics, with older individuals, women, and adults with a high school degree or less comprising large shares of non-users. 

Early adopters of technology have consistently reaped economic rewards, while disadvantaged and less educated communities are left to catch up. The same logic applies to AI: Microsoft researchers found that adoption of ChatGPT occurred at high levels in coastal metropolitan areas, in contrast with the South, Appalachia, and the Midwest. A recent study by Brookings Senior Fellow Mark Muro and Senior Research Assistant Shriya Methkupally also mapped regions across the United States based on their “AI readiness” by assessing three pillars: talent, innovation, and adoption. Their report indicated that the highest-scoring regions are largely concentrated in major cities that already possess strong technology and research ecosystems (although there are disparities in individuals’ access to those resources in urban centers, given the diversity of backgrounds and experiences represented), with rural counties lagging in AI employment, talent, innovation, and generative AI exposure. These regions may largely reflect areas that were late adopters of previous emerging technologies. If individuals in these communities do not have internet access, access to devices, or digital skills training, a lack of digital access will limit what they can do with AI—and future emerging technologies. 

Digital and AI literacy efforts are complementary 

While it might appear easy to push AI literacy initiatives without considering digital fluency, policymakers must make progress in both areas. One-third of Americans do not possess foundational technology skills, which makes it difficult to build upon basic digital literacy or even use online applications. That is, if individuals do not understand how to use computers or phones, they cannot meaningfully engage with AI literacy instruction in the first place. 

For example, debates are intensifying around job loss with greater AI adoption and use. But can AI upskilling be possible without basic digital literacy skills? Whereas the Digital Equity Act funds were designed to tackle digital access and skills gaps, the absence of support for the basics might hinder greater AI engagement by all consumers. 

Why digital equity funding matters for AI readiness

The pause of Digital Equity Act funds will have dire consequences on the current administration’s efforts to accelerate AI literacy. The recent push toward AI readiness is not orthogonal to decadeslong discussions around the digital divide. They are deeply connected. For example, digital navigators that would have been funded through the act provide personalized, context-specific, and community-based technology support. These public programs could have been instrumental in AI adoption and upskilling, which are central to the current administration’s AI readiness efforts.  

Freezing Digital Equity Act funds earmarked for digital inclusion not only reflects the politicization of “equity” but also denies the reality that all people in the U.S. need basic digital literacy resources. Without addressing such gaps, national AI literacy initiatives will be rendered futile and further exacerbate the digital divide. AI readiness is about empowering every individual with the skills, knowledge, and tools to thrive in an AI-powered society. To achieve this, foundational knowledge of digital skills is critical for building a more connected society and facilitating full participation in the digital economy.