Unequal Gains: The Divergent Impact of AI Literacy on Mental Health Across Socioeconomic Groups

Artificial intelligence (AI) technologies are becoming increasingly integrated into the everyday lives of children, influencing how they learn, communicate, and develop emotionally. As AI assumes a more central role in children’s digital ecosystems, AI literacy—the ability to understand, engage with, and make informed decisions about AI systems—is no longer a luxury but a developmental necessity. This review explores how AI literacy intersects with children’s mental health, particularly through the lens of socioeconomic status. Drawing on Digital Capital Theory and Cumulative Advantage/Disadvantage Theory, the paper examines how inequalities in access to AI-related resources shape the emotional and psychological experiences of children. It argues that while AI literacy can enhance well-being across all social groups, its impact is especially transformative for children from low-income backgrounds. Children from middle- and high-income families often experience modest emotional gains from AI engagement, having already benefited from consistent digital exposure and support. In contrast, low-income children—who often begin with limited access and lower confidence—stand to gain disproportionately in terms of emotional resilience, self-esteem, and digital confidence when their AI literacy improves. The review concludes with policy and practice recommendations that prioritize equitable access and tailored interventions, especially for underserved populations who have the most to gain from both the cognitive and emotional benefits of AI literacy.