This study investigates how digital literacy influences the adoption and use of artificial intelligence AI-enabled health technologies among professional and family caregivers involved in dementia care in Ireland. Through a mixed-methods approach combining a structured online survey (n = 318) and semi-structured interviews, the research explores caregivers’ digital skills, attitudes towards AI, training needs, institutional support, and adoption barriers and enablers. Quantitative analysis revealed that caregivers with higher digital literacy reported greater readiness to adopt AI tools, higher trust in technology, and stronger perceived usefulness of AI applications such as remote monitoring, predictive alerts, and virtual assistants. Professional caregivers demonstrated higher digital proficiency and AI exposure than family caregivers, who nonetheless expressed strong interest in training and support. While 73% of participants believed AI could improve dementia care quality, over 90% stated that formal training would be essential for effective adoption. Qualitative findings highlighted concerns about data privacy, usability, and the emotional impact of relying on AI in caregiving. Many family caregivers described feelings of isolation and lacked institutional support, whereas professional caregivers cited inconsistent workplace policies and insufficient resources. Both groups emphasised the importance of trustworthy, user-friendly, and ethically designed technologies tailored to their distinct needs. The study concludes that digital literacy is a key enabler of AI adoption in dementia care, but structural disparities,such as training access and institutional backing, create unequal opportunities between caregiver groups. Recommendations include community-based training programmes, inclusive technology co-design, and clearer national policy frameworks. These findings inform strategies to ensure equitable, effective, and human-centred digital transformation in dementia caregiving.