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Advancements in Artificial Intelligence (AI) have revolutionized literacy instruction, offering personalized learning experiences tailored to individual needs (Smith, 2023). This paper explores the benefits of AI in reading comprehension, writing assistance, language acquisition, and early literacy intervention for preschool and early elementary aged students (Brown et al., 2022), as well as the ethical considerations and challenges of integrating AI into literacy instruction (Miller, 2020). Through relevant research and case studies (Anderson, 2019; Davis, 2018), it demonstrates the positive impact of AI on literacy outcomes, fostering engagement, motivation, and achievement in literacy learning (Taylor, 2017). It explores implications for educators and policymakers, emphasizing responsible AI implementation in educational settings (Williams, 2016), and highlighting the transformative potential of AI in literacy instruction.