Prophet Ibrahim(pbh) had made this supplication as mentioned in Surah As-Shu'ara (the Poets). Ibrahim (pbh) was making a dawah to his sire Azar and his people. The people were disbelievers. Ibrahim (pbh) while explaing to the people about the truth and benefits of obeying Allah, made this supplication.
This supplication stresses that our knowledge should guide us to be righteous. We are to be righetous, not blindly, but based on sound knowledge and wisdom. By making this supplication we are eliminating the blind following of ancestral ways. Wisdom will enrich us to understand the divine message better and in turn we could be righteous people.