The Illusion of Competence: Self-Perceived Digital Literacy and AI Readiness Among European Secondary Students

Abstract: The ubiquitous presence of digital devices has cemented the 'Digital Native' paradigm, assuming inherent technological proficiency among contemporary youth. This multicenter study ($N=243$ European secondary students) challenges this narrative by investigating the gap between self-perceived digital literacy and actual technical readiness, including AI interaction. Our findings reveal a severe Confidence-Competence Divide characterized by a collective Dunning-Kruger effect: students report near-maximum self-efficacy in passive digital consumption but exhibit a sharp decline when evaluating active technological creation and algorithmic logic. Crucially, an intra-pathway analysis demonstrates that the technological gender gap is not universal; rather, it emerges significantly exclusively within Technology-oriented classrooms ($p = 0.046$), indicating the persistence of 'stereotype threat' in formal STEM environments. Additionally, the study uncovers an 'AI Paradox' wherein students significantly overestimate their critical awareness of deepfakes and algorithmic biases compared to their operational AI skills, fostering a false sense of invulnerability against modern misinformation. Ultimately, supported by an overwhelming student demand ($76.5\%$) for pedagogical reform, this research concludes that dismantling this illusion of competence requires abandoning passive theoretical instruction in favor of hands-on, active technological creation.