Artificial intelligence (AI) is transforming various sectors, including education, with the potential to revolutionize teaching, learning, and school administration. However, the successful implementation of AI-driven initiatives involves more than simply adopting new technology; it requires a thorough understanding of how school leaders perceive AI and their preparedness to integrate it into educational strategies. Principals and school leaders play a critical role in supporting effective instruction and student achievement across different content areas, but their needs and challenges, particularly regarding AI integration, are often overlooked. Understanding school leaders’ perceptions of AI is vital for successfully implementing AI actions in schools. Thus, this exploratory study employed a qualitative approach to investigate school leaders’ perspectives on AI integration in K-12 school settings. Two 90-minute semi-structured focus groups were conducted. Inductive analysis was performed to interpret the qualitative data. The findings highlighted school leaders’ perceptions of best practices of AI integration as well as their concerns about AI and the associated ethical dilemma. This collective knowledge of potential solutions for AI integration can help establish a systematic, top-down approach in K-12 school settings.