This research report from Digital Promise at the University of Pennsylvania introduces the history and use of artificial intelligence, then grapples with how educators can use AI in an ethical manner that aligns with values such as centering human judgment and centering justice. The authors argue that, more than just being proficient with the tools, AI literacy is also about emphasizing the skills of questioning data sources, recognizing bias, and making informed decisions about when and how to use AI. The guide introduces core concepts related to AI and describes three dimensions of AI literacy: understanding how AI systems function, developing skills to evaluate and use AI tools, and cultivating attitudes that support ethical and critical engagement with the technology. The framework is intended to support educators, school leaders, and policymakers as they consider how AI literacy can be integrated into teaching, professional learning, and curriculum design.