AI literacy emerges as gateway to sustainable education and student well-being

Universities worldwide are racing to integrate artificial intelligence into their learning ecosystems. In this context, a new research sheds light on a critical dimension often overlooked: the student experience. In Northern Cyprus, a region at the crossroads of diverse educational influences, a 2025 study published in Sustainability titled “AI Literacy in Achieving Sustainable Development Goals: The Interplay of Student Engagement and Anxiety Reduction in Northern Cyprus Universities” provides a comprehensive analysis of how student engagement, anxiety, and self-efficacy interrelate to shape AI literacy and support the goals of inclusive education and mental well-being.

The study targets Sustainable Development Goals (SDGs) 3 and 4, which focus on good health and well-being, and inclusive, equitable quality education. Drawing on data from 222 students across multiple academic disciplines, the research explores the psychological, pedagogical, and cultural frameworks underpinning the integration of AI into higher education in a politically unique and culturally hybrid region.

How does student engagement directly influence AI literacy?

The study confirms a strong positive correlation between student engagement and AI literacy. Using SmartPLS 4.0 for structural equation modeling, researchers found that cognitive, emotional, and social dimensions of engagement were pivotal in enhancing students’ AI capabilities. This includes their ability to identify AI tools, use them effectively, and understand their ethical implications.

Students who reported higher levels of engagement, whether through interaction with peers and instructors or through personal motivation and emotional investment, demonstrated more substantial AI literacy outcomes. This included a practical understanding of generative AI tools such as ChatGPT and their application in academic tasks. The researchers assert that meaningful engagement not only deepens technical skills but fosters ethical awareness, making students more competent and responsible users of AI technologies.

These findings highlight the role of AI tools not just as educational supplements, but as transformative assets when embedded in participatory, student-centered pedagogies.

What psychological mechanisms mediate the link between engagement and AI proficiency?

The study identifies two key mediators: anxiety reduction and self-efficacy. Both were statistically significant in enhancing the positive effects of engagement on AI literacy, but self-efficacy proved to be the stronger pathway.

According to the findings, students who were actively engaged in learning showed decreased levels of educational anxiety - a common barrier in tech-enhanced classrooms. This anxiety reduction, in turn, enabled better absorption of AI-related content, aligning with prior research on how low-pressure environments encourage exploration and innovation.

More significantly, student engagement boosted self-efficacy, which emerged as the most influential factor in AI literacy development. Students with strong beliefs in their own capabilities were more willing to experiment with AI tools, overcome challenges, and achieve educational goals. Self-efficacy was not only a psychological outcome but a functional driver of performance, validating Bandura’s social cognitive theory in this context.

How do these findings translate into broader educational and policy implications?

The implications of the study are manifold, particularly for educators and policymakers striving to align curricula with the evolving demands of AI-integrated education. First, the research advocates for curriculum design that enhances both the emotional and technical dimensions of student learning. By embedding adaptive AI tools, such as chatbots that offer real-time feedback or platforms that personalize content, educators can simultaneously increase engagement, lower anxiety, and build confidence.

Second, the study supports the integration of AI literacy into university programs not just as a technical skill set, but as a cross-disciplinary competency essential for achieving the SDGs. Its findings provide evidence-based backing for policies that mandate AI literacy training in teacher education, instructional design, and student counseling.

Third, the cultural context of Northern Cyprus adds a unique lens to these insights. The hybrid European-Middle Eastern educational culture, as noted in the study, may impact how peer interaction and collaborative learning shape AI learning outcomes. For globally diverse settings, this calls for culturally responsive AI pedagogy that tailors interventions to specific socio-educational dynamics.

Lastly, the authors provide practical recommendations for shaping curricula that sequence AI learning in stages - from basic comprehension and ethical use to advanced evaluation and creation of AI tools. The study encourages institutions to pair AI instruction with stress-reduction strategies, confidence-building activities, and frequent feedback loops to ensure holistic student development.