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The spread of fake news and misinformation poses significant challenges to the integrity of information ecosystems, undermining public trust. Libraries, traditionally trusted sources of credible information, are in a unique position to address this issue through the integration of artificial intelligence (AI). This paper explores the potential of AI to detect misinformation and enhance critical information literacy. AI technologies like natural language processing and machine learning can analyze text patterns, verify sources, and identify fake news at scale. Tools such as fact-checking algorithms and real-time content monitoring systems can help librarians curate reliable resources and guide users in distinguishing credible information from misinformation. AI can also be employed to promote critical information literacy through personalized educational experiences, including chatbots and virtual assistants that offer on-demand guidance on evaluating information. Ethical considerations play a crucial role in AI implementation. The paper addresses concerns over biases in AI algorithms, data privacy, and the ethics of automated decision-making. Strategies for mitigating these risks include prioritizing transparency, accountability, and user-centered design. By upholding ethical standards, libraries can align AI use with their core mission of serving the public good. The study also highlights the practical challenges libraries face in adopting AI, such as resource constraints, staff training, and system integration. Case studies from pioneering institutions offer insights into overcoming these barriers. Libraries can implement AI to combat misinformation and foster critical information literacy while maintaining ethical principles. This approach strengthens libraries' roles in ensuring informed, equitable access to information and positions them as key players in the fight against fake news.