An electronic device may have a display with a brightness that is adjusted based on ambient light data from one or more ambient light sensors. An ambient light sensor may include at least one silicon-based photosensor. The silicon-based photosensor may generate a corresponding raw sensor reading. Processing circuitry associated with the ambient light sensor may analyze the raw sensor reading to determine the type of light source that is present by comparing measurements from at least two different photosensors, by determining the color temperature of the light source, and/or by determining the modulation frequency of the light source. A compensation factor may then be selected by referring to a lookup table. The processing circuitry may compute a compensated sensor reading based on the raw sensor reading and the selected compensation factor. The brightness of the display may be adjusted based on the compensated sensor reading computed in this way.