My research investigates how AI and digital literacy can be more effectively taught, measured, and co-designed with marginalized communities, focusing on first-generation Hispanic immigrants in New York City. It will evaluate current digital literacy programs and examine the cultural, language based, and structural challenges learners face. The next phase involves co-designing inclusive teaching approaches and AI focused lessons with both community members and local instructors, while also developing frameworks to assess how people in these communities learn, understand, and apply AI tools in real world scenarios. Finally, the research will explore how to expand digital and AI literacy efforts into informal community spaces to support broader access, equity, and long term empowerment for community members.