Artificial Intelligence (AI) has rapidly emerged as a transformative force across diverse sectors worldwide, with policy initiatives signalling its rising prominence. In the realm of education, AI holds promise for revolutionising learning and teaching. However, the incorporation of AI in basic education faces significant challenges for many schools, particularly when explicit curriculum guidelines are absent, and teachers have limited exposure to AI technologies. This study delves into the importance of integrating Artificial Intelligence in Education (AIED), particularly in primary and secondary school settings, with a specific emphasis on the obstacles and facilitators. The research examines the impact of digital leadership and its role in mitigating teachers' barriers to AIED incorporations. These external variables are systematically outlined within the conceptual framework proposed by this study. Furthermore, it conceptualises and considers three AIED approaches—Learning from AI, Learning about AI, and Learning with AI—as internal variables central to basic-education AIED incorporations, as highlighted in previous research. The study gathers quantitative data through a self-constructed questionnaire survey from 204 school principals and management-level teachers across 60 primary and secondary schools in Hong Kong, capturing their perceptions of AIED incorporation. A structural equation model (SEM) is adopted to analyse the relationships between digital leadership, internal and external teacher barriers, and the three AIED approaches. The findings underscore that digital leadership is a significant factor in facilitating AI incorporations in schools, and that teachers' internal and external barriers considerably affect Learning about AI. The paper concludes by proposing strategies to enhance the capabilities of school leaders and teachers in promoting AIED in basic education. Copyright © 2023 The Author(s).