Background Integrating artificial intelligence (AI) into psychological education represents an opportunity in teaching methodologies, offering possibilities for instructors. Despite its potential, there is a significant gap in knowledge regarding how psychology instructors implement AI tools in their teaching practices. Objective The primary objective of this study was to explore how psychology instructors utilize AI tools. Method This study employed semistructured interviews with 15 psychology instructors. Interviews were transcribed and subjected to thematic analysis. Results The study revealed key motivations for AI integration: preparing students for the workforce, enhancing academic integrity, aligning with institutional goals, and addressing potential challenges. Additionally, various methods of AI integration were explored, focusing on fostering critical thinking, supporting research and writing, and promoting ethical AI use. Challenges such as inconsistent AI policies, varied student proficiency, ethical concerns, and difficulties with prompt engineering were highlighted. Conclusion This study shows that AI integration in psychology education is done in a myriad of ways, and instructors demonstrate creative approaches to how to implement AI and the potential challenges. Teaching Implications Psychology instructors can consider integrating AI tools into their coursework. Additionally, educators can address potential challenges by providing clear AI usage guidelines and offering tailored.