The increasing significance of artificial intelligence (AI) in various industries highlights the necessity for industry leaders and professionals to comprehend and gain knowledge about AI. The urgency for AI literacy is more critical than ever due to the potential unethical use of AI resulting from insufficient knowledge. This issue is particularly crucial for educators because they need to understand and adapt to the impact of AI within educational institutions, with some needing to use and become literate in AI, given that students now have increased access to public AI tools. This research presents a multi-phase study to address the issue of bridging the knowledge gap in AI by conducting co-creation with innovation champions, illustrated by a case of Generative AI innovation in a K-12 school. Using action design research, we engaged experienced teachers who are experts in pedagogical innovation to co-create a generative AI-enhanced platform at a leading K-12 education institution known for its pedagogical innovation in Australia. The findings reveal that champions enhance their knowledge through their subject-matter expertise, organizational knowledge, and AI knowledge gained through external exposure and experience. The study also highlights the key elements that facilitate a cross-domain knowledge exchange platform, enabling champions to be exposed to and experience AI technological learning, leading to shifts in their understanding and perception of AI. The initially unaware and sceptical champions become more aware and capable of articulating more technical AI knowledge rooted in a shared value. This research demonstrates how co-creation serves as a pathway for learning AI, particularly among K-12 teachers who are innovation champions. It underscores the impact of experiential and organizational learning on AI collaborative learning and behavioral intentions. Additionally, the study presents that aligning organizational and personal visions and values can influence perceptions about AI technologies, enhancing the discourse on AI and education innovation.