Purpose: This study aims to investigate how preservice teachers' stages of concern, beliefs, confidence and interest in AI literacy education evolve as they deepen their understanding of AI concepts and AI literacy education. Design/methodology/approach: AI literacy lessons were integrated into a technology integration course for preservice teachers, and the impacts of the lessons were evaluated through a mixed-methods study. The Concerns-Based Adoption Model was employed as the analytical framework to explore participants' specific concerns related to AI. Findings: Findings revealed that participants initially lacked AI knowledge and awareness. However, targeted AI literacy education enhanced preservice teachers' awareness and confidence in teaching AI. While acknowledging AI's educational benefits, participants expressed ongoing concerns after AI literacy lessons, such as fears of teacher displacement and the potential adverse effects of incorporating generative AI on students' critical learning skills development. Originality/value: Despite the importance of providing preservice teachers with AI literacy skills and knowledge, research in this domain remains scarce. This study fills this gap by enhancing the AI-related knowledge and skills of future educators, while also identifying their specific concerns regarding the integration of AI into their future classrooms. The findings of this study offer valuable insights and guidelines for teacher educators to incorporate AI literacy education into teacher training programs.