This chapter explores the cognitive dimension of Artificial Intelligence Literacy by tracing the historical and conceptual evolution of “automatic thinking.” It begins with a historical overview, charting the human aspiration to create intelligent automata—from ancient myths and mechanical contraptions such as the Mechanical Turk to the development of logical-computational machines by pioneers such as Babbage and Lovelace. The narrative then pivots to the modern era, explaining the significance of the Turing Test and detailing the foundational split between Symbolic AI (rule-based systems) and Subsymbolic AI (machine learning). After establishing this historical context, this chapter examines the pervasive, “onlife” reality of AI in the lives of children and adolescents, arguing that traditional approaches of technological prohibition are no longer viable. In response, two pedagogical methods are proposed to foster a foundational understanding of AI. The first is Philosophy for Children (P4C), a maieutic approach to critically discuss the complex nature of intelligence itself. The second is the teaching of computational thinking, using practical methods like unplugged coding to demystify the algorithmic processes that underpin AI’s “intelligent behaviour.”