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At AERA 2025, this study was presented as an ongoing investigation into how K–12 educational leaders navigate the integration of AI in schools. Over the past year, the research has been completed. This paper now presents finalized findings, focusing on policy, ethics, and equity. Drawing on Weick’s sensemaking theory and Rogers’s diffusion of innovation, the research explores leaders’ perceptions, decision-making, and the historical context of technology adoption. Data from interviews with superintendents and principals reveal persistent challenges, such as policy gaps, ethical dilemmas, and inequitable access, while highlighting the emergence of “AI champions” and adaptive policy frameworks. The findings underscore the importance of professional development, equity-driven strategies, and historical awareness in shaping responsible AI adoption.