<p>In the age of generative AI, promoting AI literacy is widely regarded as essential to narrowing the digital divide among older adults. This study investigates how a Teacher–Learner–AI (TLA) collaboration model, as practiced by an older adult school in China, supports AI literacy development among older adults. Drawing on classroom observations and semi-structured interviews with three teachers and twelve older learners, this study finds that teachers, AI, and learners collaboratively shape the learning process, with each playing an important role in enhancing older adults’ AI literacy. Reflecting on the nature of AI literacy and the evolving teacher–learner dynamic, teachers took on the role of interaction designers, facilitating meaningful engagement among teachers, learners, and AI. Leveraging its interactive capabilities, Large Language Models (LLMs) functioned as a cognitive mediator during deep and high-quality exchanges, prompting learners’ reflection and cognitive processing. From passive recipients to active agents, older adults developed practical skills, strengthened metacognitive awareness, and built self-efficacy through situated learning practice. These findings suggest that the TLA model demonstrates significant potential in fostering older adults’ AI literacy, offering implications for the design of collaborative AI literacy education.</p>