This study explores the impact of generative AI on digital learning capabilities in rural Japanese island communities, focusing on empowerment through education. The research adopts a participatory action research (PAR) approach, conducted in a Japanese island setting. The participants include four core members actively engaged in education and administration and additional workshop participants, totalling over a dozen individuals. Covering the research period from April 2022 to March 2027, this chapter reports interim findings based on data collected up to June 2024. The study addresses disparities in digital participation caused by geographic isolation, limited educational infrastructure, and traditional social structures. Utilising the Capability-Driven Digital Education Framework (CDDEF), it evaluates how generative AI can foster critical thinking, public reasoning, and cultural inclusiveness to enhance digital participation. Findings reveal significant challenges island residents face in adopting generative AI due to physical and social constraints. However, educational initiatives emphasising inclusion in knowledge creation and critical engagement with digital technologies can mitigate these challenges. The study concludes that empowerment through tailored educational activities is essential for improving digital literacy and participation in isolated communities. It also highlights the effectiveness of the CDDEF in designing and assessing strategies, offering insights for bridging digital divides in similar contexts.