Young people across Europe and neighboring regions are increasingly encountering artificial intelligence (AI) in education, media, and everyday life. However, the rapid adoption of AI tools is not being matched by a corresponding rise in critical digital literacy or ethical awareness, leaving many youth susceptible to misinformation and manipulation. “AI and Young People” youth exchange addresses these pressing challenges by empowering young people to not only use AI, but also to critically question and understand it. Through an intensive residential youth exchange, hands-on learning experiences, and follow-up local initiatives, we aim to equip youth as critical and ethical thinkers in the digital age, while creating lasting resources for the broader community. We are going to achieve it through the following objectives: 1. We will equip a core group of 42 individuals: 36 youth participants (aged 18–30) and 6 group leaders (no age limit) with practical skills to act as informed peers and facilitators. This goes beyond raising awareness - our aim is that, by the end of the 7-day exchange, at least 80% of participants will demonstrate a minimum 30% improvement in their ability to identify AI-generated misinformation and ethical risks, as measured by a practical "Digital Audit Challenge." For youth workers, this means adding concrete, non-formal methods to their toolbox for teaching critical digital literacy. 2. We will channel this competence into measurable local action. Each national delegation will design and implement a youth-led local initiative, such as a workshop, awareness campaign, or school presentation, within three months of returning home. Our goal is to directly engage at least 240 young people across all six events, with feedback showing a significant increase in participants’ ability to identify key AI-related risks. This ensures learning is translated into agency and peer-to-peer impact. 3. We will equip youth workers and educators with verified methodologies by co-creating and disseminating the multilingual "AI Literacy Toolkit". The toolkit will be published at open sources by 31 October 2026. Impact will be measured by a dissemination campaign (1 November 2026 – 28 February 2027), targeting at least 1,200 verified downloads from 15+ countries, tracked via our website and partner platforms. 4. Finally we will ensure long-term civic engagement and cross-border cooperation by establishing the "AI & Youth Ambassadors Network" as a sustainable community of practice. The network and a consortium Memorandum of Understanding (MoU) will be launched by 28 February 2027. Success will be measured by the active participation of at least 20 alumni in the network and the joint development of a new Erasmus+ project proposal, both achieved within the project timeline. Through this approach, the project builds both immediate and long-term capacity in youth work, empowering young people and practitioners to become critical, ethical, and resilient digital citizens.