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This study introduces the AI-Enhanced Civic Storytelling (AICS) Framework, a theoretically grounded model scaffolding GenAI-assisted digital storytelling for civic education. Twenty-nine in-service teachers implemented AICS over eight weeks using Book Creator and Claude. Mixed-methods analysis of AI interaction logs (1,160 prompts), digital stories (n=11), reflective journals (n=232), and pre/post surveys revealed significant gains: Civic Engagement (d=1.84), Digital-Storytelling Self-Efficacy (d=0.93), AI Self-Efficacy (d=1.42), all p<.001. Prompt sophistication strongly correlated with outcomes (r=.74). Three phases of civic-pedagogical growth emerged: Awareness, Articulation, Advocacy. Findings demonstrate AICS effectively develops teachers' civic voice while building critical AI literacy for classroom implementation.