Uncovering patterns and trends in vast, ever-increasing quantities of data has been enabled by different machine learning methods and techniques used in Artificial Intelligence (AI) systems. Permeating many aspects of our lives and influencing our choices, development in this field continues to advance and increasingly impacts us as individuals and our society. The risks and unintended effects such as bias from input data or algorithm design have recently stirred discourse about how to inform and teach AI in K-12 education. As AI is a new topic not only for pupils in K-12 but also for teachers, new skill sets are required that enable critical engagement with AI. AI literacy is trying to close the gap between research and practical knowledge transfer of AI-related skills. Teachers' AI-related technological, pedagogical and content knowledge (TPACK) are important factors for AI literacy. However, as teachers' perspectives, beliefs and views impact both the interpretation and operationalisation of curriculum. this study explores teachers' and teacher educators' understanding and preconceptions of AI to inform teacher education and professional development. To gain a comprehensive understanding of teachers’ conceptualisations regarding AI an anonymous questionnaire together with focus group discussions were employed. The qualitative content analysis underpinned by the theoretical framework Intelligent TPACK reveals that teachers' AI-related content knowledge is generally gained through incidental learning and often results in pre- and misconceptions of AI. Our analysis also revealed several potential challenges for teachers in achieving core constructs of Intelligent TPACK, examples of such challenges are vague and unclear guidelines in both policy and curriculum, a lack of understanding of AI and its limitations, as well as emotional responses related to participants' preconceptions. These insights are important to consider in designing teacher education and professional development related to AI literacy.