The advancement of generative AI technologies underscores the need for AI literacy, particularly in Southeast Asia’s elementary Science, Technology, Engineering, Art, and Mathematics (STEAM) education. This study explores the development of AI literacy principles for elementary students. Utilizing existing AI literacy models, a three-session classroom intervention was implemented in an Indonesian school, grounded in constructivist, constructionist, and transformative learning theories. Through design-based research (DBR) and network analysis of reflection papers (n = 77), the intervention was evaluated and redesigned. Findings revealed clusters of interdependent elements of learner experiences, categorized into successes, struggles, and alignments with learning theories. These were translated into design moves for future intervention iterations, forming design principles for AI literacy development. The study contributes insights into optimizing the positive effects and minimizing the negative impacts of AI in education.