Perceptions of the potential benefits and risks of artificial intelligence (AI) vary widely among people with different levels of knowledge about the technology. By better understanding these variations, we can identify and address challenges in the adoption and responsible use of AI for all. This study employs a qualitative approach to explore these differences through criterion sampling. A total of 15 participants who self-identified as belonging to one of three AI-literacy categories (Limited, Intermediate, and Expert) were interviewed. The audio-recorded and transcribed interviews were thematically analyzed, identifying differences in understanding among different literacy groups regarding AI’s impact on employment, creativity, bias, trust, data privacy, and the need for regulation and awareness. The study reveals that varying levels of AI-literacy shape perceptions of bias, privacy, creativity, job security, and trust. A key finding was that participants with limited AI-literacy did not link AI to data and therefore did not associate concerns like data privacy with AI, and also did not believe that AI can be biased, as they viewed bias as a human quality rather than something
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