Artificial Intelligence (AI) is increasingly prevalent, permeating various aspects of and spreading across education. However, a comprehensive understanding of AI applications and how to define AI literacy is under-investigated. On this note, teaching and evaluating AI literacy necessitates educators to integrate it into course content. The implementation and use of AI are reshaping college students' learning experiences. Limited efforts have been made to promote AI literacy for individuals at academic institutions. This study aims to investigate college instructors' perspectives on AI integration in curriculum design at a higher education institution, Palestine Technical University Kadoorie (PTUK). A mixed study approach is used with a pre-existing questionnaire containing 14 items in this study and 17 semi-structured interviews. The data were collected from nine different departments at PTUK. The target population consisted of 176 college instructors. The results revealed that college instructors perceive AI literacy as a weak element in the curriculum. Two themes merged from qualitative data: accomplishing educational goals, and lack of AI guidelines and concepts. Recommendations include the necessity to incorporate AI literacy curriculum design in higher education contexts in different disciplines.