Foundational literacy skills during early childhood are essential for lifelong academic achievement and overall cognitive development. This entry mainly discussed the use of artificial intelligence (AI) to support early childhood literacy and its implication for educators’ professional capacity. According to literature, AI offers personalized, adaptive, and interactive learning experiences that meet individual student needs. Some applications of AI in early childhood literacy include AI-driven storytelling tools that adjust narrative complexity to a child’s reading level, continuous formative assessment that provides real-time data for informed instruction, and generative AI for creating visual supports that clarify complex concepts, which is especially beneficial for learners with diverse needs. While these technologies facilitate differentiating instruction and engaging young students, their integration also presents challenges. For example, critical barriers, including (a) the need for robust, ongoing professional development for educators, (b) significant ethical considerations regarding data privacy and fairness for a vulnerable population, and (c) the scarcity of developmentally appropriate, AI-integrated curricula that align with pedagogical best practices, were presented in this chapter. To navigate these complexities, a structured implementation using a Multi-Tiered System of Support framework was proposed, which may allow schools to systematically integrate AI tools to provide universal, targeted, and intensive interventions. The use of AI must be viewed not as a replacement for the teacher, but as an effective supplementary tool; therefore, successful utilization of AI for early childhood literacy, a systemic approach to enhancing educators’ professional capacity will be crucial.