The rapid advancement of artificial intelligence (AI) has created significant opportunities to improve the quality of life across various sectors, including rural communities. Nevertheless, limited digital literacy remains one of the primary barriers preventing rural populations from effectively adopting AI technologies. This community engagement program was conducted by the Faculty of Social and Political Sciences (FISIP), Universitas Tanjungpura, in Parit Baru Village, Kubu Raya Regency, West Kalimantan, with the objective of enhancing AI literacy and strengthening the capacity of rural youth to utilize AI productively. The program employed a participatory and educational approach consisting of community outreach, interactive workshops, practical AI simulations, and the establishment of the Parit Baru Digital Youth Community as a sustainable learning platform. Program effectiveness was evaluated using pre-test and post-test assessments complemented by qualitative observations and participant feedback. The findings reveal a substantial improvement in participants' AI literacy, with average test scores increasing from 42.5 before the training to 76.3 after the intervention. Beyond improved technical competence, the program successfully established an active digital youth community that continues to promote AI-based innovation within the village. These findings demonstrate that participatory technology-based community empowerment can significantly strengthen rural youth's capacity to adapt to digital transformation while fostering sustainable local innovation. This initiative also contributes to the achievement of Universitas Tanjungpura's Key Performance Indicators (KPIs), particularly KPI 2 (community engagement) and KPI 3 (strategic partnerships), while supporting the strategic vision of the University's Institute for Research and Community Service (LPPKM) in promoting technology-driven community empowerment.