Artificial Intelligence (AI) is transforming higher education by offering personalized learning experiences and improving institutional efficiency through intelligent tutoring systems and adaptive educational technologies. This study examines the importance of AI literacy among pre-service English as a Foreign Language (EFL) teachers in Spain, focusing on their current knowledge, gaps, and the types of training needed to address these deficiencies. By highlighting the need for AI-focused courses in teacher training programs, the research emphasizes equipping educators with the skills to integrate AI tools effectively. The findings indicate that while pre-service teachers recognize the importance of digital technologies, there is a significant need for ongoing professional development to enhance their confidence and proficiency in using these tools. The study provides practical recommendations for improving training programs by advocating for a balanced approach that integrates AI with traditional pedagogical practices. It underscores the importance of incorporating ethical considerations and AI literacy into teacher education to prepare educators for the responsible use of AI in classrooms. This research offers valuable insights for developing targeted training programs that empower future educators to create dynamic, inclusive, and effective learning environments.