This project explores potential of AI for pedagogical innovation while addressing concerns of misuse, and academic integrity, in order to prepare students for the new AI era. The project aims to answer the question that to what extent and how universities can embrace AI tools in classroom teaching and assessment. To achieve this purpose, the project develops two AI-integrated content-based courses, training packages and materials for teachers and students, and a website for assembling project outcomes. The sample courses and training packages will provide a tangible demonstration regarding integrating AI tools in university curricular, equip teachers with the necessary AI literacy in integrating AI tools in teaching and learning, as well as empowering students’ collaborating with AI tools sensibly for effective learning.