Teachers skilled in using generative artificial intelligence (GAI) have advantages in terms of increased productivity and augmented instructional capabilities. Alongside the rapid advancement of GAI, teachers require authentic learning opportunities to build the confidence and expertise necessary for engaging with these technologies creatively and responsibly. This article provides an illustrative case of preparing preservice and in-service teachers with the knowledge, skills, and mindsets to teach and create with GAI. Using a self-study method to investigate professional practices, we analyzed the curriculum, instruction, and assessment in an upper-level undergraduate course in multimedia design and production. Thirty-five teachers engaged in experiential activities focussed on developing artificial intelligence (AI) literacy, alongside a collaborative assignment to co-author an open-access textbook, "Teaching and Creating With Generative Artificial Intelligence." To support equitable and inclusive access to the educational benefits offered by AI, the Student Artificial Intelligence Literacy (SAIL) framework was developed. SAIL facilitates student AI literacy through curriculum engagement and three distinct types of interactions: cognitive, socio-emotional, and instructor-guided. Building on lessons learned from the COVID-19 pandemic regarding the issues with technology training for teachers in Canada, five recommendations are offered to facilitate the meaningful integration of AI literacy in teacher education programs.