Artificial intelligence (AI) is transforming healthcare, making AI literacy an essential competency in nursing education. As AI-driven technologies reshape clinical decision-making, patient monitoring, and administrative workflows, nurse educators must equip students with the skills to understand, evaluate, and apply AI in practice. This presentation explores the integration of AI literacy into nursing curricula, outlining strategies for developing AI competencies, and ensuring future nurses can navigate the evolving digital healthcare landscape. AI has inherent limitations. It cannot create something new, nor can it replace the nuanced, relational care nurses provide. This presentation underscores the importance of combining AI-generated recommendations with nurses' clinical judgment and critical thinking, ensuring AI use remains rooted in the principles of nursing science (Park et al., 2025). Nurse educators must understand the diverse AI applications in healthcare to effectively prepare students for safe and ethical technology use (Montejo et al., 2025). The aim of this presentation is to provide a roadmap for embedding AI literacy in nursing education. Using frameworks such as the Data-Information-Knowledge-Wisdom (DIKW) model and Bloom’s Taxonomy, programs can introduce AI concepts from foundational knowledge to ethical evaluation. Russell et al. (2023) identified six AI competency domains for healthcare professionals: basic AI knowledge, social and ethical implications, AI-enhanced clinical encounters, evidence-based evaluation of AI tools, workflow analysis, and practice-based learning and improvement. Alongside these domains, this presentation addresses challenges such as faculty preparedness, student engagement, ethical concerns, data privacy, limited resources, and resistance to change. Strategies to overcome these barriers include faculty development, interdisciplinary collaboration, curricular integration, and simulation-based, hands-on learning experiences. By promoting AI literacy, nurse educators empower students to critically engage with AI, advocate for its ethical application, and enhance patient-centered care. As nursing practice evolves with technology, programs must prepare graduates with both clinical expertise and digital fluency. This work calls on nursing education to integrate structured AI literacy initiatives and foster a culture of innovation that advances healthcare quality, safety, and outcomes.