Generative artificial intelligence (GenAI) is reshaping how consumers and employees disclose data to digital systems. Unlike the discrete disclosure decisions examined in previous literature on privacy settings, GenAI use unfolds through interactive prompting in which users share information to cocreate outputs. This research examines how self-investment in such disclosure processes shapes perceived privacy value, defined as the perceived net value of benefits relative to privacy risks. Across four studies, we show that greater self-investment increases perceived ownership of the cocreated output; moreover, the effect of self-investment on ownership is strongest when interactions involve sensitive data disclosure, with ownership subsequently shaping privacy value through perceived benefits and privacy risks. Finally, AI prompt literacy is an actionable antecedent of self-investment: a field intervention and an online experiment show that even modest improvements in practical prompting capability can increase engagement with GenAI. The findings contribute to privacy, GenAI, and cocreation research by showing that privacy evaluations in GenAI contexts are dynamic, self-invested, and shaped by users’ ability to guide the interaction. https://msi.org/working-paper/creating-privacy-value-through-artificial-intelligence-prompt-literacy-the-role-of-self-investment/ MSI_Report_26-126