The rapid emergence of sophisticated generative AI (GenAI) tools, particularly Large Language Models (LLMs), has profoundly reshaped college language education, offering both novel opportunities and significant challenges. Language teachers are now pivotal in equipping students for a future where human-AI collaboration is commonplace. Central to this effort is AI literacy, which encompasses technical proficiency, pedagogical strategies, critical evaluation, and ethical awareness. Teachers’ AI literacy not only enables the effective and responsible integration of AI into teaching but also drives pedagogical transformation, shifting traditional methods toward more personalized, collaborative, and authentic learning experiences. This study explores the role of AI literacy in facilitating such transformations and its implications for enhancing language education in higher education contexts.