Introducing AI concepts in the earliest years of schooling can help children make sense of intelligent technologies, yet few resources exist for K–2 classrooms. This paper presents the design and outcomes of a professional development (PD) program supporting K–2 teachers as they explored AI literacy and co-designed unplugged classroom activities. Grounded in AI4K12's Five Big Ideas in AI framework, the PD combined hands-on learning, collaborative design, and micro-teaching opportunities. Guiding activities included Train the AI (pattern recognition), What Happens Next? (consequences of AI use), Who Did the Robot Hear? (data diversity), and Teach the Robot (model training). Educators then created screen-free, English Language Arts-aligned activities using storytelling, sorting, and embodied play to introduce AI topics such as machine learning and fairness in age-appropriate ways. The PD emphasized integrating AI into existing K–2 literacy routines, lowering implementation barriers while supporting vocabulary development, reasoning, and empathy. Teacher reflections revealed growing confidence in adapting AI topics for young learners and highlighted the value of peer collaboration, clear language, and tactile materials.