This study examines the policies surrounding Artificial Intelligence in Education (AIED) through quantitative and qualitative methods. It explores how AI technologies are being adopted and their impact on schools. By addressing a gap in the existing literature, the study focuses on the formation, challenges, and potential of AIED policy frameworks. The current study involves 181 participants from different educational levels, using surveys, content analysis, and focus groups to collect data. The findings of this study indicate the low awareness among participants regarding AI in education and teachers are afraid to use it in teaching and learning. Additionally, teachers vary in their perceptions of AIED. Furthermore, a framework of AIED policy is provided to guide the education sector toward a moral, equitable, and efficient integration of AI tools, paving the way for enhanced educational achievements and innovation in teaching methods. Further research and improvements can be achieved by adopting AIED policy in the school context.