In this paper, we discuss the potential of using hackathons to promote critical discussions among participants from diverse backgrounds in the context of Artificial Intelligence. Our main objective for this work was to explore the viability of utilizing a one-day hackathon to bring together stakeholders, such as researchers, teachers, students and developers, to share their perspectives on AI literacy while collaboratively designing digital learning materials to promote AI literacy. In the current landscape, awareness and AI literacy have become essential. There is, however, no clear consensus on the definition of AI literacy, the needed target focus for teaching it, or how to design (digital) learning materials and curricula. Our findings show that the participants’ mixed backgrounds contributed to a meaningful discussion, and the hackathon outcomes were characterized as relevant and appropriate for teaching AI Literacy. We envision that this work contributes to the discussion about reaching a consensus on the definition of AI literacy, how to design (digital) learning materials and curricula, and who to include when creating these materials, by using a participatory design approach.