This study investigates the level of awareness among teachers regarding the use of artificial intelligence (AI) in education, focusing on whether this awareness varies according to socio-demographic characteristics, access to technology, and specific knowledge and beliefs about AI. Conducted in Northern Cyprus during the 2023–2024 academic year, this study employed a survey model with purposive and snowball sampling methods, involving 164 teachers. Teachers at different levels, namely, primary school, secondary school, high school, and university, were included in this study. The “Artificial Intelligence Awareness Scale”, developed by Ferikoğlu and Akgün (2022), was used to measure AI awareness. Data normality was verified through skewness and kurtosis values, allowing for parametric statistical tests such as t-tests, one-way ANOVA, logistic regression, and chi-square analysis. This study explored the distribution of AI use across different school types and educational levels and assessed the impact of sub-dimensions of AI awareness on its application in teaching. Findings revealed no significant influence of teacher demographics (age, gender, education level, type of school, institution level, and monthly income) on AI awareness. However, usage patterns indicated that university lecturers were more likely to incorporate AI in their teaching, followed by primary and high school teachers, with secondary school teachers using it the least. A Multilayer Neural Network Analysis identified practical knowledge as the most critical factor influencing the use of AI in teaching (importance weight of 0.450), followed by beliefs and attitudes (0.298), relatability (0.148), and theoretical knowledge (0.104). These results highlight the importance of practical knowledge for fostering AI integration in educational practices, underscoring significant implications for teacher training and professional development programs.