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This study explores the perceptions of rural school principals in South Dakota regarding the implementation of artificial intelligence (AI) in PK-12 schools. It examines principals' familiarity with AI, considerations for students using AI, challenges in AI implementation, and perceived impacts of AI on education. Using a concurrent triangulation mixed methods design, data were collected from 46 principals through a survey and analyzed using descriptive statistics and thematic analysis. Results indicate limited familiarity with AI among principals, with significant concerns about ethical implications, potential for student cheating, and the need for professional development. The study underscores the importance of targeted strategies for AI integration in rural schools to enhance educational outcomes and address unique contextual challenges.