This research study examined the mediating effect of innovative work behavior on the relationship between AI-powered leadership and skill and ethics-based performance among 59 public elementary schools in Lopez, Quezon during academic year 2025-2026 with 235 respondents a combination of school heads and teachers. This study aims to explore the interrelationships among 5 variables and to examine whether innovative work behavior mediates and AI-competency moderate the impact of AI leadership to skill and ethics-based performance. It used the descriptive-correlational research design and quantitative method, the data gathered via combination of online survey using google form and paper and pencil survey through validated research-made survey questionnaire. The data was analyzed using mean, standard deviation, Pearson r, mediation and moderation analysis. The findings revealed that the AI-powered leadership, skill-based performance, ethics-based performance, innovative work behavior, and AI competency were all rated as a great extent. The AI-powered leadership was significantly related to innovative work behavior, skill and ethics-based performance. Also, innovative work behavior is significantly related to both skill and ethics-based performance. The relationship between AI-powered leadership and skill and ethics-based performance was significantly mediated by innovative work behavior. The relationship between AI-powered leadership and skill and ethics-based performance was significantly related to AI competency but not significant in their moderating effect. This research study concluded that AI-powered leadership supported better school performance and outcomes, especially when it encouraged innovative work behavior. It is confirmed that the ethical use of AI and strong leadership practices remained valuable in the public elementary schools. This research study concluded that AI-powered leadership supported better school performance and outcomes, especially when it encouraged innovative work behavior. It is confirmed that the ethical use of AI and strong leadership practices remained valuable in the public elementary schools.