Artificial intelligence (AI) is transforming healthcare, but the efficacy and equity of these systems depend on the quality of data and algorithms that govern them. Nurse leaders and educators must cultivate AI literacy to responsibly guide implementation and instruction. Foundational knowledge of AI components, the implications of data and algorithmic bias, and strategies for integrating ethical, equitable AI education are essential key competencies in AI adoption. Introducing pedagogical tools such as scenario-based learning and case studies and incorporating evaluation frameworks as part of the curricula can safely prepare nurses in the responsible use of AI from academia to practice.