In today's technology-driven healthcare landscape, AI competencies are essential for medical students. This study assessed AI literacy and online information search (OIS) skills among 336 students from 12 public medical institutions in Sindh, Pakistan. The survey revealed strong AI literacy in areas such as hardware, software, data literacy, content creation, safety, and problem-solving, but students struggled with understanding AI errors. They also demonstrated sufficient behavioral, procedural, and meta-cognitive competencies in online information searching. A significant positive correlation between AI literacy and OIS skills was found, indicating that higher AI literacy improves students’ search abilities. These findings underscore the need to integrate AI-related skills into medical education to better prepare students for the evolving healthcare environment. The study offers insights for AI developers, AI vendors, medical educators, librarians, medical institution administrators, and policymakers on how they can play a significant role in enhancing AI literacy and search competencies in medical education.