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The rapid emergence of artificial intelligence (AI) in education presents both opportunities and challenges for classroom integration. This study investigates in-service teachers’ perspectives, needs, concerns, and evaluation criteria for effective AI implementation in a rural Midwestern U.S. school district. Using a case study method, including interviews and surveys with 16 teachers and the district principal, five themes were identified: AI integration beliefs, teacher needs and constraints, ethical concerns, pedagogical applications, and student impact. Findings revealed active AI use alongside significant concerns about diminished student creativity and a lack of clear ethical guidelines. Teachers identified eight key evaluation criteria. These insights directly informed the co-design of the Critical AI in Education Evaluation Framework, a practical tool for responsible AI integration.