New questions and concerns arise every day about the impact of AI in schools, such as how teachers will learn about AI and leverage it in their classrooms, how they can use it to develop their own teaching expertise, and if AI for educators really leads to better teaching and learning. The authors believe that AI can help teachers become more effective by providing consequence-free personalized teaching practice. To explore AI's potential for supporting teacher development, an open-source, freely available AI-powered classroom was built called Teaching with Grace. Teaching with Grace provides teaching simulations, where teachers can practice their instructional moves in order to develop skills and problem-solving strategies. It was found that this simulated classroom creates dynamic and personalized opportunities to practice teaching that can provide better and more equitable feedback and engage in more meaningful interactions with students.