The article explores the perspectives of teachers, parents, and students on integrating generative AI (GAI) systems into elementary literacy education. The study, conducted through workshops and interviews with 12 families and 16 teachers, reveals that GAI systems can be beneficial in generating adaptable teaching materials, enhancing ideation, and providing personalized feedback. However, concerns arise regarding authorship, student agency, and the potential for bias and misinformation. The authors propose design strategies to mitigate these issues, such as implementing adult oversight, balancing AI roles, and facilitating customization to enhance student agency. The findings highlight the need for a balanced approach that respects the complexities of teaching and learning while leveraging the potential of GAI to improve educational outcomes.The article explores the perspectives of teachers, parents, and students on integrating generative AI (GAI) systems into elementary literacy education. The study, conducted through workshops and interviews with 12 families and 16 teachers, reveals that GAI systems can be beneficial in generating adaptable teaching materials, enhancing ideation, and providing personalized feedback. However, concerns arise regarding authorship, student agency, and the potential for bias and misinformation. The authors propose design strategies to mitigate these issues, such as implementing adult oversight, balancing AI roles, and facilitating customization to enhance student agency. The findings highlight the need for a balanced approach that respects the complexities of teaching and learning while leveraging the potential of GAI to improve educational outcomes.