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Artificial intelligence (AI) is transforming education by enhancing instruction, personalizing learning, and improving teaching efficiency. In response, the Department of Education (DepEd) in the Philippines introduced AI Guidelines in Basic Education to promote ethical and responsible use of AI technologies in schools. The successful implementation of these guidelines depends on teachers' awareness, readiness, and challenges when integrating AI tools into classroom practices. This study examined teachers' awareness of the DepEd AI guidelines, their readiness to implement AI in teaching, and the challenges they face in adopting AI technologies, while exploring the relationships among these variables. This study used a descriptive–correlational research design involving 60 public school teachers from elementary to senior high school selected through purposive sampling. Data were collected using a structured questionnaire with four sections: demographic profile, teachers' awareness, teachers' readiness, and challenges in AI implementation. The data were analyzed using frequency and percentage, mean and standard deviation, and Pearson product–moment correlation. The results revealed that teachers demonstrated high awareness of the DepEd AI guidelines (overall mean = 3.34) and high readiness to integrate AI in teaching (overall mean = 3.46). However, teachers reported challenges, particularly the need for additional training and professional development and limited internet connectivity in schools. A significant positive relationship was found between teachers' awareness and readiness, while the relationships between awareness, readiness, and challenges were not statistically significant. These findings suggest that although teachers are aware and prepared to adopt AI in education, sustained institutional support, improved infrastructure, and continuous professional development are necessary for the effective implementation of the DepEd AI guidelines in basic education.