Recent advances, accessibility, and adoption of artificial intelligence (AI) increasingly impact dermatology. Understanding how AI is designed, developed, validated, deployed, and monitored will help learners systematically evaluate the technology, research, and clinical utility of these tools. This first of a two-part CME equips dermatologists with the fundamental knowledge of how AI is created and reviews current applications in dermatology. Through increasing AI literacy, this manuscript aims to empower dermatologists to critically analyze and co-create technologies that augment our capacity to provide evidence-based, ethical, and patient-centered care.