The development of artificial intelligence (AI) requires teachers to possess competencies that include conceptual understanding, skills in using various AI-based applications, and ethical awareness in its implementation. However, teachers' ability to integrate AI technology into learning is still limited. This community service activity aims to enhance teachers' AI literacy through workshops, collaborative practices, and case study-based reflections using the Participatory Action Research (PAR) approach. The program was conducted at SDN 008 Sangatta Utara, Kutai Timur, with the stages of look, think, act, reflect, and revise. The material includes an introduction to AI concepts, exploration of applications such as ChatGPT, Magic School, and Wayground, as well as the application of AI in lesson planning and assessment. The results of the activities show an increase in participants' conceptual understanding, technical skills, and ethical awareness in using AI. Teachers are also able to develop learning media, formative assessments, and digital learning tools more effectively and adaptively. These findings indicate that strengthening AI literacy contributes to the enhancement of pedagogical competence, productivity, and teachers' readiness to face the digital education transformation in a critical, creative, and responsible manner.