This paper presents an experience report with a qualitative analysis of reflective textual productions in a fully online course delivered via Moodle, within a Teacher Education Enhancement Program for Distance Education at a Brazilian Federal institution. The course was designed to articulate the development of teachers’ digital competencies, based on DigCompEdu and national frameworks, with ethical literacy in generative artificial intelligence (AI), grounded in international guidelines such as those proposed by UNESCO. The study analyzed three activities: the “Digital Profile” forum, a case study forum on ethics in generative AI, and a final self-assessment journal. Data were interpreted using reflexive thematic analysis. The results revealed four dimensions: emotional and identity tensions, the reframing of digital competencies beyond technical mastery, the emergence of ethical AI literacy, and the importance of supportive online learning environments. These dimensions emerge as interconnected processes that reshape how teachers understand their role in AI-mediated educational contexts. The findings indicate that integrating self-assessment, ethical discussion of AI, and reflective writing fosters a more critical and situated digital teacher identity. The study contributes to international discussions on human and AI collaboration in education, particularly by highlighting the relational and ethical dimensions often underexplored in competency-based approaches.