This paper explores the complex interaction between contemporary literacy and the role of artificial intelligence (AI) in education, examining the opportunities AI provides. Through a systematic literature review (SLR) and hypothesis analysis, the advantages and challenges that AI brings to educational systems were investigated. The SLR identified numerous studies confirming the positive impact of AI on the development of digital literacy and education among various groups of students. It was also highlighted that AI offers personalized learning experiences, encouraging deeper understanding of the material and increasing student engagement. Analysis of hypotheses, following statistical processing of a survey conducted among 160 students at the Faculty of Education in Osijek, further confirmed the positive impact of AI on the development of digital literacy and overall knowledge acquisition. The analysis shows that students have a positive attitude towards the application of artificial intelligence in education and are open to the introduction of artificial intelligence in their own classes. However, there was an emphasis on the need to consider ethical issues, including data privacy and algorithmic bias, to ensure responsible AI implementation in education. The conclusions underscore the importance of further research and the development of guidelines for the responsible use of AI in the educational context. Integrating AI into educational systems requires thorough consideration of ethical, pedagogical, and sociocultural implications to ensure fair and effective use of this technology in enhancing the quality of education. This study provides a foundation for further development of policies and practices that will maximize the potential of AI in education, ensuring that all students have access to high-quality education in the digital age.