In this article, the authors discuss how artificial intelligence is a double-edged sword in early childhood education by presenting some of its positive effects (personalized learning, personalized interactive support, and increased accessibility to broadened learning experiences) and negative effects (overuse and misuse). Considering that young children are growing up in a nearly AI-ubiquitous world and are likely exposed to AI-powered tools, the authors propose applying the POWER (purposeful, optimal, wise, ethical, responsible) principles to maximize the benefits and minimize the drawbacks of AI use. Additionally, the authors recommend the integration of the POWER principles into AI literacy as an imperative for promoting the appropriate use of AI-powered tools. (author abstract)