Here, machine literacy means being able to question and use machine-generated language while retaining responsibility for your own reasoning. Fluency in an answer is not evidence that its conclusion follows.
A reader asks an assistant to summarise a policy. The summary says an appeal is always permitted. The reader checks the original, finds the eligibility condition and rewrites the conclusion before relying on it.
Read: On literacy
Essays
Literacy Is the difference between being able to formulate your own reasoning and simply selecting from pre-packaged options, between understanding a text and merely consuming it.