Given the rapid integration of generative artificial intelligence (GenAI) technologies, such as large language models, into educational contexts, fostering students’ GenAI literacy has become essential. However, previous AI literacy frameworks may inadequately reflect specific competencies necessary for proficient GenAI use. To address this gap, this study aimed to conceptualise a GenAI specific literacy framework tailored explicitly for educational settings and systematically examine recent research trends concerning GenAI literacy. Employing a systematic literature review approach, 51 empirical studies published in 2023 and 2024 were selected and analysed based on five identified competencies of GenAI literacy: (1) know and understand GenAI, (2) use and apply GenAI, (3) evaluate and incorporate GenAI, (4) GenAI ethics, and (5) attitudes towards GenAI. The findings indicate that students demonstrated moderate understanding of GenAI concepts but frequently faced challenges in prompt engineering and critical evaluation of AI-generated outputs. Ethical considerations, particularly related to academic integrity, privacy, and data security, were highlighted as significant concerns. Furthermore, positive student attitudes towards GenAI, including curiosity and self-efficacy, emerged as vital components enhancing engagement with GenAI tools. A five-step interaction model was proposed to help in fostering students' GenAI literacy, emphasising iterative and dynamic engagement with GenAI tools. This study underscores the necessity of explicitly integrating GenAI-specific competencies into educational practices and recommends clear institutional policies, and further empirical research to support the responsible, effective, and reflective use of GenAI in school settings.
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