Libraries are emerging as front-line hubs for campus AI literacy, hosting sandboxes and hands‑on programs where students and faculty learn responsible generative-AI use. Institutions like Bryn Mawr and Kwantlen Polytechnic University are piloting AI declaration statements and demo tools to guide classroom adoption. At the same time, IT units warn of 'shadow AI'—unvetted tools used without IT review—creating security, privacy and compliance risks. Campuses must balance enabling experimentation with establishing safeguards, approval workflows and training to manage data handling and FERPA implications. Higher-education CIOs, librarians and faculty developers will need coordinated policies: clear procurement paths for AI tools, centralized guidance for classroom use, and library-centered training programs to raise campus-wide AI fluency.