As artificial intelligence becomes increasingly embedded in everyday life, concerns about its impact on education and democracy have grown. Many fear that AI will undermine academic integrity, encourage laziness, and erode critical thinking. Yet, rather than viewing AI solely as a threat, universities have a unique opportunity to harness it as a tool for strengthening democracy by cultivating students’ AI literacy. The rise of generative AI tools like ChatGPT has sparked intense debate in higher education. While some see these tools as a menace to academic honesty, others argue that they present a chance to rethink teaching and learning. Rather than banning AI, educators can guide students in using it responsibly, ethically, and critically—skills that are essential for informed citizenship. Civic literacy—the ability to understand democratic processes, engage in public discourse, and make informed decisions—is a core mission of universities. Yet, this role has often been underemphasized, especially in science, technology, engineering, and mathematics (STEM) fields. By integrating AI literacy across all disciplines, universities can help students develop the critical thinking skills needed to navigate complex information landscapes. AI, by its nature, is not neutral. It can reflect biases in training data, generate false information, and rely on outdated sources. Teaching students to question AI outputs—assessing their accuracy, credibility, and potential biases—mirrors the kind of critical analysis needed to evaluate news, political speeches, or policy claims. This process fosters a deeper understanding of how information is constructed and manipulated, empowering students to become more discerning citizens. Moreover, digital literacy today must include not just understanding how AI works, but knowing when and how to use it appropriately. This involves ethical judgment, transparency, and accountability—values that align closely with democratic principles. However, educators must remain cautious. Overreliance on AI can lead to “cognitive offloading,” where students outsource thinking, reasoning, and memory to machines. This undermines the very skills universities aim to develop. The solution lies not in rejecting AI, but in using it as a catalyst for deeper learning—challenging students to verify, analyze, and reflect on what AI produces. Scholars like Sarah Eaton emphasize that the connection between civic literacy and digital fluency is growing stronger. As AI reshapes society, future citizens will need to navigate issues far more complex than those we face today. Preparing them now means equipping them with tools to think independently, assess evidence, and participate meaningfully in democratic life. Ultimately, universities can play a vital role in shaping a healthier democracy—not by resisting AI, but by teaching students to engage with it thoughtfully. By fostering AI literacy across disciplines, higher education can help build a generation of informed, critical, and active citizens ready to meet the challenges of the future.