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This mixed-methods study explores how K-12 educational leaders are navigating the integration of Artificial Intelligence (AI) in schools, emphasizing implications for policy and professional development. Drawing on survey responses from 183 leaders, the research identifies opportunities for personalization and operational efficiency, alongside challenges including data privacy, ethical concerns, and institutional readiness. Findings reveal a lack of formal policy guidance and inconsistent professional learning opportunities. By framing AI adoption as a leadership and governance issue, the study contributes to the AERA 2026 theme by imagining equitable, future oriented pathways for responsible AI use in education, informed by the current absence of clear historical precedent. The paper offers a roadmap for policy development grounded in collaborative leadership, digital equity, and professional capacity building.