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Despite the growing presence of artificial intelligence in education, current frameworks for assessing AI literacy in K–12 settings lack clarity, developmental appropriateness, and actionable guidance. We conducted interviews with 13 experts—including AI developers, educators, literacy researchers, and assessment designers—organized into four domain-specific panels. Using a multi-phase, qualitative approach, we gathered and analyzed expert insights to refine an AI literacy framework with an eye toward its use in developing authentic assessments. Nine key themes emerged, such as clear definitions, process-oriented approaches, ethical awareness, developmental appropriateness, and interdisciplinary integration. Our findings attempt to address gaps in existing conceptualizations and offer guidance for policymakers and practitioners seeking to design equitable, relevant, and actionable AI literacy initiatives for today’s students.