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This study explores how educators in Denver Public Schools design, implement and conceive of culturally and linguistically (CLS) sustaining approaches to AI literacy through a design-based research (DBR) study. This research responds to global calls for participatory CLS AI literacy, national mandates for AI integration into education, and local demands from staff, students, and families to center ethics, equity, and inclusion. Through a 45-hour professional development unit (PDU), participants co-design, implement, and refine contextualized, interdisciplinary AI-infused lessons through DBR communities of practice. Mixed-methods phenomenographic data analysis captures the variation in educators’ conceptions of AI curriculum across diverse settings. Findings offer practical tools, community-centered structures, and theoretical insights into supporting ethical, equitable, and inclusive AI literacy in K-12 schools.