The rapid evolution of artificial intelligence (AI) has created new demands within the information environment, compelling libraries to adopt innovative service models that effectively respond to emerging challenges and user expectations. The provision of such innovative services largely depends on the AI literacy competencies of librarians. This study investigated the relationship between AI literacy skills and innovative service delivery among librarians at Northwest University, Kano. A correlational survey research design was adopted, and the entire population of 26 librarians was included in the study. Data were collected using a structured questionnaire and analyzed using descriptive statistics, including frequency counts, means, and standard deviations, to address the research questions. Pearson Product–Moment Correlation and simple linear regression were used to test the study’s hypothesis and examine the predictive influence of AI literacy skills on innovative service delivery. Findings revealed a strong positive relationship between AI literacy skills and innovative service delivery, r(24) = .99, p < .001. The study concludes that AI literacy is a critical competency for librarians seeking to enhance innovation and effectively perform their roles in contemporary library environments. It recommends that librarians participate in continuous capacity-building programmes to strengthen their practical skills in applying AI technologies for improved service delivery.