The integration of Artificial Intelligence (AI) into English as a Foreign Language (EFL) teaching presents both opportunities and challenges for teacher education. While AI's role in enhancing language learning is increasingly recognized, limited research has explored how EFL teacher educators perceive and navigate AI integration. Addressing this gap, the present study investigates Indonesian EFL teacher educators’ perceptions of AI integration, focusing on the challenges they face, the competencies they require, and their professional development needs. Employing an interpretivist qualitative approach, the study analyzed data from semi-structured interviews with eight teacher educators at a private university in West Java. Thematic analysis—conducted both manually and with ChatGPT assistance—revealed key challenges including overreliance on AI, issues of academic integrity, and inadequate institutional support. Educators emphasized the need for AI literacy, pedagogical adaptability, and ethical awareness. They also identified the importance of structured, ongoing AI-focused professional development supported by institutional collaboration. Findings underscore the urgent need for responsive policies, ethical guidelines, and capacity-building efforts to support responsible AI adoption in teacher education. These insights contribute to the growing discourse on AI integration and inform the design of context-sensitive professional development programs in EFL contexts.