Language Teacher Education Research

This article argues for a reframing of AI literacy in MA TESOL education from a compliance-driven competency to a co-constructed process of inquiry, reflection, and critical engagement. The discussion is prompted by a classroom activity in which an AI-generated annotated bibliography, which contained entirely fabricated references, was initially judged by postgraduate students to be credible and academically appropriate. Whilst the exercise exposed challenges associated with verifying AI-generated academic content, it also highlighted broader questions about how AI literacy is conceptualised and developed within TESOL. Drawing on thematic analysis of interviews with two international MA TESOL students, the study explores how students understand, use, and evaluate AI following institutional guidance and targeted classroom input. Findings reveal emerging but cautious forms of AI literacy characterised by scepticism, risk awareness, verification practices, and anxiety regarding plagiarism and academic integrity. Despite explicit instruction, participants positioned AI primarily as a source of potential error rather than as a pedagogical resource. This article therefore proposes a co-constructed model of AI literacy that values dialogue, shared inquiry, scaffolded experimentation, and process-oriented assessment that enables students to develop reflective, context-sensitive, and professionally relevant AI practices.