AI has become integral to daily life. Teaching, learning, and research are no exception. However, most studies on education have approached AI as a technology and focused mostly on learning outcomes rather than understanding student engagement and sense-making of AI as a socio-cultural tool with impact on their daily lives. To address this gap in the knowledge base, we performed a qualitative case study to explore young children's conceptualization of AI not only as a technology but also as a tool utilised in their everyday lives. We collected data through semi-structured group interviews with eighteen children aged 11 to 12 and thematically analyzed the data through a combination of deductive and inductive coding techniques. The findings suggest that: a) children's conceptualizations of AI as a technology are grounded in their personal experiences; b) children have a socio-cultural approach to AI in which they experience and understand AI as first and foremost a supportive tool; and, c) children exhibit a high level of engagement with ethics of AI, showing a keen interest in the socio-cultural implications, particularly about AI applications with which they are familiar. Based on these findings and grounded within existing literature, we offer a set of recommendations for the design of engaging and personally relevant AI education curriculum materials for young children with critical AI literacy at the forefront.