The integration of Artificial Intelligence (AI) in education offers transformative opportunities for personalized learning and efficient instructional practices. However, the successful adoption of AI in classrooms is contingent upon teachers' preparedness, technological literacy, and understanding of ethical considerations. This study examined how these factors alongside professional development and access to technology influence the effective implementation of AI tools in classrooms. A quantitative research design involved 210 teachers from nine schools in Punjab, Pakistan, was employed, utilizing structured questionnaires to collect data on these variables. The findings revealed significant positive correlations between technological literacy, professional development, and access to technology with the effective use of AI tools. Ethical considerations, while moderately correlated, showed lower statistical significance, underscoring the need for more focus in this area. Access to technology emerged as the strongest predictor of successful AI implementation, highlighting disparities in infrastructure as a critical barrier, particularly in under resourced schools. The study underscores the necessity of holistic strategies to empower educators through targeted training, ethical literacy, and equitable resource allocation. By addressing these factors, schools can unlock AI's potential to enhance teaching and learning while promoting inclusivity and innovation in education. The findings provide actionable recommendations for policymakers and educators to bridge gaps in preparedness and equity.