Digital Explainer – What is Digital Literacy?

In 2019, a UK Government report showed digital skills were required in at least 82% of online advertised vacancies. Now in 2025 digital skills need some understanding of AI tools. In June 2025, Policy Connect, a cross-party think tank, published their report ‘Skills in the Age of AI’, looking at digital literacy critical to skilling individuals and businesses for success in the age of AI. In short, governments around the world are monitoring digital literacy and skills, but what do they mean? What do you need for your business?

An accepted definition of Digital Skills is hard to find. For a time, people used ‘ICT’ (Information and Communications Technology) and digital skills as interchangeable terms, but they are not. However, as society and technology moved away from pure information and communication to how digital content, innovation, skills and technology are embedded in everything we do, the term has lost its usefulness.

UNESCO has already developed AI competency frameworks for students focussed on four core competencies: a human-centred mindset, ethics of AI, AI techniques and applications, and AI system design. This framework emphasises interdisciplinary learning across both STEM and social studies. The Netherlands is seen as a leader in this, and it is currently redeveloping its curriculum.

According to the World Economic Forum’s Future Jobs Report, 40% of employers anticipate a reduction of workforces where AI can automate tasks by 2030. On the other hand, there are estimates that machines and algorithms will have created 133 million new roles globally, but will have displaced 75 million jobs by the same date.

The importance of AI competency is now being reflected in academia. WMG is an academic department at the University of Warwick. It provides collaboration between academia and the public and private sectors, seeking to drive innovation in science, technology and engineering. It offers a guide to what it means to be digitally literate.

WMG recognises that digital skills are crucial for equipping the workforce. To identify which digital competencies should take priority, they created a list of basic and advanced digital skills – applicable across diverse sectors such as healthcare, engineering, and business using insights from World Economic Forum reports. They then consulted widely, including industry professionals and academics from various universities, who were invited to rank advanced digital skills without assigning a strict order.

WMG has since then developed a three-year strategy aligned with UNESCO’s AI literacy framework to enhance capabilities in areas such as foundational AI concepts. WMG is also launching an MSc in Applied Artificial Intelligence from September 2025.

From this research and other sources, we are able to offer a guide to how you might think about literacy:

Information and Data Literacy:

• The ability to find, evaluate, and use digital information effectively, including understanding data security practices.

Digital Communication and Collaboration:

• Proficiency in using various online communication channels (email, social media, etc.) and collaborating in digital environments.

Digital Content Creation:

• Skills in developing and managing digital content, including understanding copyright and licensing.

Digital Safety:

• Awareness of online dangers and how to take safety precautions and protect people online.

Basic IT Literacy:

• Confidence in using common software and systems like Outlook, PowerPoint, and Excel, and an awareness of digital security risks.

Advanced Digital Skills:

• Software Engineering, mobile app development, and related skills.
• Data Analytics & Data Science, including computer vision and real-time operating systems.
• Business Analytics & Visualization.
• Digital Consultancy; evaluating organisational problems, and analysing advanced digital technologies.
• Networking; understanding of computer networking, cloud architecture, and hardware.

Digital Research Skills:

• Use of digital tools to locate, evaluate, and access information.

Cybersecurity:

• Understanding principles and practices of cybersecurity to protect personal and organisational data.

AI and Machine Learning:

• Understanding the types of artificial intelligence and machine learning, large language models and guidance on safe use.

Process Automation:

• Management and technology skills to automate business processes using digital tools.

If you have questions or concerns about digital literacy, please contact James Tumbridge and Robert Peake.