This chapter explores the evolving role of artificial intelligence (AI), data, and information literacy in higher education (HE), focusing on the skills and frameworks needed to support students as critically informed participants in a datafied society. It reviews the current generative artificial intelligence policy landscape in the United Kingdom and Ireland, evaluating how universities are addressing AI literacy through guidance, training, and curricular integration. The authors argue for a shift beyond restrictive policies towards proactive, inclusive, and pedagogically grounded approaches that build capacity among both students and educators. Drawing from an extensive literature base, the chapter proposes a comprehensive AI literacies framework that encompasses technical competencies, ethical awareness, social justice, and algorithmic accountability. It highlights the importance of critical thinking, interdisciplinary engagement, and sustainability in AI education, and concludes with policy recommendations aimed at fostering responsible, equitable, and future-ready AI literacy in HE.