This study explores instructor perceptions of AI code generation tools through a multi-institutional interview study involving 12 instructors from Australia, Finland, and New Zealand. The research investigates educators' current practices, concerns, and planned adaptations related to these tools. The findings highlight both opportunities and threats for programming education. AI tools can support students by providing code examples, explanations, and feedback, but there are concerns about over-reliance, plagiarism, and the impact on learning. Instructors expressed concerns about the potential for AI tools to undermine the teaching of programming fundamentals and the need for new pedagogical strategies to address these challenges. The study also emphasizes the importance of adapting assessment practices and curriculum to incorporate AI tools effectively. Overall, the research underscores the need for a balanced approach to integrating AI tools into programming education, ensuring that students develop the necessary skills and understanding while maintaining academic integrity. The study calls for further research to explore how AI tools can be used to enhance programming education and address the challenges they present.This study explores instructor perceptions of AI code generation tools through a multi-institutional interview study involving 12 instructors from Australia, Finland, and New Zealand. The research investigates educators' current practices, concerns, and planned adaptations related to these tools. The findings highlight both opportunities and threats for programming education. AI tools can support students by providing code examples, explanations, and feedback, but there are concerns about over-reliance, plagiarism, and the impact on learning. Instructors expressed concerns about the potential for AI tools to undermine the teaching of programming fundamentals and the need for new pedagogical strategies to address these challenges. The study also emphasizes the importance of adapting assessment practices and curriculum to incorporate AI tools effectively. Overall, the research underscores the need for a balanced approach to integrating AI tools into programming education, ensuring that students develop the necessary skills and understanding while maintaining academic integrity. The study calls for further research to explore how AI tools can be used to enhance programming education and address the challenges they present.