1. DOL Framework 2. Readiness Assessment 3. Curriculum Framework 4. Train-the-Trainer 5. LWDB Partnership 6. Funding Pathways 7. Outcomes & Reporting

What the DOL AI Literacy Framework Requires

Key Takeaway

The DOL Framework (TEN 07-25) defines five content areas and seven delivery principles for AI literacy programs funded under WIOA. Every CBO program should address all five areas. This section translates federal requirements into actionable terms.

The Department of Labor's Training and Employment Notice 07-25 (February 2026) defines AI literacy as "a foundational set of competencies that enable individuals to use and evaluate AI technologies responsibly, with a primary focus on generative AI." The framework establishes five foundational content areas and seven delivery principles.

The 5 Content Areas

The DOL Framework organizes AI literacy into five areas of competency. Every AI literacy program funded under WIOAWorkforce Innovation and Opportunity Act — the primary federal law governing workforce development funding and programs. should address all five, though the depth and sequencing will vary by audience and sector.

1

Understand AI Principles

Learners grasp what AI is, how it works at a high level, and where it falls short. Covers pattern recognition, capabilities across modalities, training vs. inference, hallucinations, and human oversight.

Example Activities
  • Guided exploration: "Ask an AI to summarize a news article, then fact-check three claims."
  • Comparison exercise: AI-generated vs. human-written text.
What CBOs need: A facilitator who can explain AI without jargon. Access to at least one free-tier generative AI tool. Printed handouts for participants without devices.
2

Explore AI Uses

Learners experiment with AI tools across practical use cases — drafting, summarizing, analyzing data, scheduling, transcription, and decision support.

Example Activities
  • Participants use AI to draft a cover letter, then revise it.
  • Teams summarize a 3-page policy document and compare summaries.
What CBOs need: Multiple AI tools for hands-on use. Sector-relevant examples (healthcare scheduling, manufacturing inventory, hospitality guest communication).
3

Direct AI Effectively

Learners practice giving AI clear instructions — contextual framing, prompt structure, iterating on outputs, and avoiding vague or misleading inputs.

Example Activities
  • Prompt engineering workshop: write, evaluate, revise, compare results.
  • "Bad prompt / good prompt" exercises with side-by-side comparisons.
What CBOs need: Facilitators trained in basic prompt engineering. A structured exercise bank with prompts at progressive difficulty levels.
4

Evaluate AI Outputs

Learners assess AI-generated content for accuracy, completeness, logical errors, and alignment with original intent. This is the critical thinking layer.

Example Activities
  • Participants receive an AI-generated email with embedded errors and identify every inaccuracy.
  • Group exercise: evaluate an AI-generated budget projection against real data.
What CBOs need: Assessment rubrics for evaluating AI output quality. Real-world documents for comparison. Facilitator comfort with "AI got it wrong" as a teaching moment.
5

Use AI Responsibly

Learners understand data privacy, workplace policies, ethical use, context-specific risks, and personal accountability for AI-assisted decisions.

Example Activities
  • Scenario: "Your supervisor asks you to use AI to draft a client letter. What information should you NOT paste in?"
  • Review a sample workplace AI acceptable use policy.
What CBOs need: A sample acceptable use policy template. Discussion prompts for ethical scenarios. Awareness of industry-specific regulations (HIPAA, FERPA).

The 7 Delivery Principles

The DOL Framework does not just specify what to teach — it specifies how to teach it. These seven principles should guide program design, facilitator training, and curriculum development.

1

Enable Experiential Learning

Learning happens through doing, not watching. Participants must interact with AI tools during every session.

Design check: Does every session include at least 50% hands-on time?
2

Embed Learning in Context

AI literacy must connect to the learner's actual job, industry, or career goal. Generic training is insufficient.

Design check: Can a participant describe how they would use AI in their specific job?
3

Build Complementary Human Skills

AI augments — it does not replace — judgment, creativity, communication, and problem-solving. Training must develop both.

Design check: Does the module require participants to exercise judgment?
4

Address Prerequisites to AI Literacy

Many participants lack the digital literacy foundation AI literacy assumes. Programs must assess and address these gaps.

Design check: Is there a pathway for participants below baseline on digital literacy?
5

Create Pathways for Continued Learning

AI literacy is a starting point, not an endpoint. Programs should connect to advanced skills, credentials, and AI-related career pathways.

Design check: Does the program offer at least one "what's next" pathway?
6

Prepare Enabling Roles

Managers, career counselors, and mentors must understand AI well enough to support participants. Training the learner is not enough.

Design check: Are the people who support participants also AI-literate?
7

Design for Agility

AI capabilities evolve rapidly. Programs must have built-in mechanisms to update content, swap tools, and adapt without redesigning from scratch.

Design check: Can you update one module without rewriting the entire curriculum?

Connecting the Framework to WIOA Requirements

Regulatory Context

The DOL Framework sits within a broader federal policy architecture. Understanding this chain is essential for CBO positioning.

  1. 1

    TEGL 03-25 (August 2025)

    Authorizes WIOA Title I funds for AI training, establishing the legal basis for workforce boards to fund AI literacy programs.

  2. 2

    TEN 07-25 (February 2026)

    Provides the content framework — the what and how of AI literacy. This is the framework explained on this page.

  3. 3

    State WIOA Plan Modifications (PY 2026–2027)

    States describe how they will integrate AI literacy into their workforce systems. These plans set the local funding context.

  4. 4

    Local Workforce Development Boards

    Translate state plans into procurement, programming, and CBO partnerships. This is where funding meets delivery.

For a CBO, the practical chain is: DOL sets the standard → states adopt it → local boards fund it → CBOs deliver it. This guide covers the last step in that chain.