AI Masks Low Literacy in Millions of U.S. Workers, Raising Risks
AI enables workers with low literacy to conceal their skills gaps in daily tasks.
Why it matters: AI’s role in masking literacy issues impacts training and compliance, posing challenges for legal and business professionals relying on augmented workforce capabilities.
- About 130 million U.S. adults read below a sixth-grade level, affecting workplace communication.
- The lowest literacy level among U.S. adults rose from 19% in 2017 to 28% in 2023, or roughly 59 million people.
- The U.S. Department of Labor launched the ‘Make America AI-Ready’ initiative on March 24, 2026, offering free AI literacy courses.
- An AI Literacy Framework was released in February 2026 outlining foundational content and delivery principles for AI training.
Recent analysis highlights a growing challenge: artificial intelligence tools are enabling approximately 130 million American adults who read below a sixth-grade level to effectively hide their functional literacy gaps in the workplace. These gaps impact the ability to manage common tasks such as reading emails, following safety protocols, and understanding technical documentation, essential in many jobs. As reported by Axios, AI’s assistance may improve immediate productivity but obscures underlying literacy deficiencies, according to linguist Stephen Reder.
The trend is concerning because it complicates how employers and legal professionals assess workforce readiness and compliance risks. Between 2017 and 2023, the share of U.S. adults performing at the lowest literacy level increased from 19% to 28%, roughly 59 million people, signaling a widening challenge for businesses and regulators. To address this, the U.S. Department of Labor introduced the ‘Make America AI-Ready’ initiative in March 2026, which delivers free AI literacy courses by text message to help workers better understand and use AI tools effectively.
Additionally, the Department released its AI Literacy Framework in February 2026. The framework defines five foundational content areas and seven delivery principles to guide nationwide efforts in improving AI literacy. These programs aim to upskill workers in a way that complements literacy development, not just mask deficits.
For legal teams and business leaders, this underlines the importance of monitoring how AI is integrated into workflows and ensuring training and compliance programs account for hidden literacy risks. Without addressing the core issue, AI’s role could inadvertently increase operational and compliance vulnerabilities.
By the numbers:
- 130 million U.S. adults read below a sixth-grade level — impacting workplace literacy.
- 28% of U.S. adults performed at the lowest literacy level in 2023 — up from 19% in 2017.
- March 24, 2026 — date the Department of Labor launched the ‘Make America AI-Ready’ initiative.
Yes, but: While AI helps workers overcome immediate literacy challenges, it may delay efforts to improve fundamental skills, potentially increasing long-term risks.
What's next: The Department of Labor’s AI literacy programs will expand and be monitored for impact on workforce skill levels throughout 2026 and beyond.