The conflict of interest is pretty obvious. OpenAI, Google, and Microsoft are backing a bill that funds teaching kids to use... OpenAI, Google, and Microsoft products. "AI literacy" as defined in the bill is literally "the ability to use artificial intelligence effectively."
That's not literacy, that's onboarding lol.
Real digital literacy teaches how systems work, who profits from them, and how to think critically about them. This bill will in practice hand curriculum design to the same vendors who endorsed it.
Teaching kids to prompt ChatGPT is not the same as teaching them to understand what ChatGPT is. Nobody funding this wants the latter.