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Although introducing Artificial Intelligence (AI) education into K-12 schools has attracted significant interest from educators and researchers, empirical research on effective strategies for enhancing elementary students’ AI literacy remains limited. To address this research gap, we proposed a pedagogical framework grounded in design-based learning and experiential learning, namely Do-SMARTER, aiming to foster young learners’ AI literacy. This study employed a 2-cycle educational design research approach involving a total of 91 Grade-5 students (n=50 in Cycle A; n=41 in Cycle B). Besides elaborating on the iterative process of the pedagogical design of Do-SMARTER, this study reports on the evaluation of its pedagogical effectiveness in fostering AI literacy. This research provides empirical evidence supporting the adoption of Do-SMARTER in elementary AI education.