The development of Artificial Intelligence (AI) has brought significant changes to educational practices, including Islamic Religious Education (PAI) learning. The presence of AI requires teachers not only to possess technical skills in using technology but also to understand, evaluate, and utilize it critically, pedagogically, and ethically. This study aims to analyze the AI literacy of Islamic Religious Education teachers and its implications for innovation in Islamic Religious Education learning. The study employed a library research method by examining relevant scientific sources, including books, journal articles, previous research findings, and academic documents. The data were analyzed descriptively and analytically through identification, classification, comparison, interpretation, and synthesis of findings related to AI literacy and learning innovation. The results indicate that AI literacy among PAI teachers encompasses technical competence, critical thinking, pedagogical competence, and ethical awareness in the use of technology. Such literacy has implications for the development of more diverse and innovative learning materials, media, methods, activities, and assessment practices. However, the use of AI requires careful verification of religious information and appropriate control over the risk of technological dependence. This study concludes that AI literacy can serve as an important professional competence for PAI teachers when integrated with Islamic subject-matter knowledge, pedagogical competence, and ethical responsibility. This study contributes to expanding the conceptual understanding of AI literacy as an emerging professional competence that supports the transformation of Islamic Religious Education learning while maintaining the values and objectives of Islamic education.