Artificial Intelligence Governance in Higher Education: The Role of Knowledge-Based Strategies in Fostering Legal Awareness and Ethical Artificial Intelligence Literacy

Artificial intelligence (AI) is now part of the daily routine in many universities. It shows up in learning platforms, digital assessments, and even student services. But despite its growing presence, institutions still face the challenge of making sure it is used in ways that respect legal and ethical boundaries. This research explores how university settings that prioritise knowledge—real, shared, and thoughtfully managed—can help students become more aware of these dimensions. A total of 270 students took part in the study. We used a structural equation model to look at the links between knowledge-based practices, institutional governance, and students’ understanding of AI’s legal and ethical sides. The results show that when knowledge is genuinely valued—not just stored or repeated—governance practices around AI tend to develop more clearly. And this, in turn, makes a difference in how students relate to AI systems. Rather than teaching ethics directly, governance shapes the environment where such thinking becomes part of the everyday. When students see that rules are not arbitrary and that transparency matters, they become more cautious, but also more confident in navigating technology that does not always make its logic visible.