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The purpose of this study is to examine how Artificial Intelligence (AI) technology applied in literature learning in the digital era, the challenges teachers face in integrating it, and its impact on students. This study uses a descriptive qualitative method with research subjects of 953 elementary school teachers in Indonesia. Data were collected through questionnaires and in-depth interviews with key informants selected as sources using purposive sampling. Data were analyzed using interactive techniques, and their validity was measured through triangulation of sources and methods. The results show that the application of AI technology has great potential for changing the way teachers organize the literature learning process efficiently and effectively. The use of AI technology in literature learning provides accessibility and personalization, thus helping teachers manage learning to achieve better student achievement. Teachers stated that AI technology makes it easier for students to access materials (44.3%). However, it is necessary to anticipate issues of privacy and unfairness in algorithms, because not all students have the same access and abilities, towards the application of AI technology (54.1%). The impact is that students become dependent on technology, even though the application of AI technology in learning actually shows a good direction for the future (48.6%).