Artificial intelligence (AI) education has gained popularity, and educators are developing activities to enhance students' AI literacy and promote collaboration in problem-solving. While current approaches using simulations and games can improve students' AI knowledge, they may not adequately prepare them for higher-level cognitive tasks. Only a few studies have explored the use of maker education to develop students' AI literacy. This case study employed a mixed-method approach and integrated AI into maker education to enhance students' motivation, career interest, confidence, collaboration, and AI literacy across low to high cognitive domains. The study involved 35 secondary school students in an AI maker program, where AI-driven recycling bins were employed as a project-based learning intervention. The results demonstrated a positive impact on students' motivation, AI literacy, and collaboration. The study provides design principles and an instructional design framework to assist future educators in creating meaningful maker-based learning experiences in AI education. It highlights the potential of using maker education to enhance students' AI literacy and offers guidance to educators on developing effective AI maker activities. The article also discusses theoretical contributions and practical implications for future research.