This study examines the multifaceted dimensions of artificial intelligence literacy among library and information science students across South Asia, focusing on socio-demographic variables such as country, level of study, gender identity and English-language competency. A survey of 914 participants from Bangladesh, India and Pakistan highlights notable disparities in artificial intelligence literacy levels, with Indian students excelling in conceptual understanding and ethical awareness, Bangladeshi students demonstrating practical artificial intelligence proficiency and Pakistani students showing heightened sensitivity to ethical concerns. The findings reveal that advanced levels of study correlate with greater artificial intelligence literacy, while language competency influences familiarity and understanding but not overall proficiency. While artificial intelligence tools are widely used for academic tasks like information searching, proofreading and article summarization, limited exposure to advanced applications and pervasive ethical concerns – such as academic integrity and plagiarism – underscore the need for targeted interventions in library and information science education. This research contributes to the global discourse on artificial intelligence literacy by providing empirical evidence to inform curriculum development, policymaking and professional readiness. It advocates for inclusive, ethical and regionally tailored artificial intelligence literacy programmes to prepare library and information science students for the demands of artificial-intelligence-driven library and information management services, enriching both local and international library and information science education frameworks