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Introducing Artificial Intelligence (AI) education to schooling has become a growing interest among educators and researchers. Empirical research into effective strategies for developing primary students’ AI literacy is still in its infancy. To address this research gap, grounded on Design-based learning (DBL), we have developed a pedagogical framework, namely Iterative Design-and-Learning Sequence (IDeaLS), for facilitating younger learners to acquire AI literacy through real-world problem-solving. Besides elaborating on the pedagogical design of IDeaLS, this paper reports on our pilot study that investigated its pedagogical effectiveness in terms of AI knowledge, AI skills, AI ethics, and AI attitudes. The study involved 50 Grade-5 students. The research findings were positive, providing empirical evidence to support the adoption of IDeaLS in primary AI education.