The project “AI: Friend or Foe?” aims to empower young people aged 15–18 to critically understand artificial intelligence and its growing impact on their everyday lives, mental wellbeing and participation in society. From a youth work perspective, the project responds to a clear gap between young people’s intensive daily use of AI-driven technologies and the limited opportunities they have to reflect on these tools in a safe, supportive and discussion-based learning environment. Through this youth exchange, we want to support young people in developing practical AI and digital literacy, while at the same time strengthening their critical thinking, ethical awareness and emotional wellbeing. The project is designed as a non-formal learning journey that starts from young people’s real experiences with social media, algorithms and digital tools, and gradually builds understanding, confidence and responsibility. A strong focus is placed on mental wellbeing, as many young people experience pressure, comparison culture, information overload and anxiety linked to AI-driven platforms. The main objectives of the project are: -to help young people understand what artificial intelligence is, where it appears in daily life and how algorithms influence information, behaviour and choices -to strengthen critical thinking and ethical awareness by addressing topics such as misinformation, deepfakes, bias, privacy and data protection -to support digital wellbeing by helping participants reflect on the impact of AI and social media on mental health, self-image, attention and healthy daily habits -to empower young people through youth-led learning, international cooperation and active participation in designing activities and project outputs The project will be implemented as a 7-day international youth exchange in Croatia, involving 40 young participants and 9 adults from secondary schools in Croatia, Serbia, Portugal and Romania. Activities include non-formal workshops, group discussions, debates, hands-on testing of AI tools, creative media work, reflection groups and peer learning in mixed international teams. Each thematic day focuses on a different aspect of AI, such as basics and ethics, practical tools, mental wellbeing, future perspectives and youth responsibility. By combining learning, reflection and practice, the project aims to equip young people with skills and attitudes they can apply after the exchange: more conscious use of AI, better care for their mental wellbeing, stronger communication and cooperation skills, and increased confidence to actively engage in discussions about technology in their schools and communities.