As artificial intelligence (AI) becomes increasingly central to various fields, there is a growing need to equip K-12 students with AI literacy skills that extend beyond computer science. This paper explores the integration of a Project-Based Learning (PBL) AI toolkit into diverse subject areas, aimed at helping educators teach AI concepts more effectively. Through interviews and co-design sessions with K-12 teachers, we examined current AI literacy levels and how teachers adapt AI tools like the AI Art Lab, AI Music Studio, and AI Chatbot into their course designs. While teachers appreciated the potential of AI tools to foster creativity and critical thinking, they also expressed concerns about the accuracy, trustworthiness, and ethical implications of AI-generated content. Our findings reveal the challenges teachers face, including limited resources, varying student and instructor skill levels, and the need for scalable, adaptable AI tools. This research contributes insights that can inform the development of AI curricula tailored to diverse educational contexts.