The swift incorporation of Artificial Intelligence (AI) has significantly changed the dynamics of learning in the educational field. This paper discusses the emerging challenges teachers face as they adapt to AI and presents strategic approaches to their digital proficiency. This study analyzes how these challenges hinder effective technology integration and exacerbate the digital divide in education. This study used mixed-methods, including a survey of 50 teachers in Yogyakarta, a case study of schools implementing AI workshops for teachers, and an analysis of school policies on AI technology adoption. These approaches evaluate teachers' digital literacy competencies. The findings show that teachers are not ready to use AI effectively. Although targeted interventions such as workshops show promising results, a more systemic approach including comprehensive professional development, supportive school policies, and sustained resource allocation is essential to improve teacher competencies in the AI era and mitigate the potential for a widening digital divide.