Grounded in transformational leadership theory, the technology acceptance model, and constructivist learning theory, this descriptive qualitative research study explores principals' strategic leadership practices in optimizing student outcomes through AI-powered learning like ChatGPT in US-based Chinese immersion programs. We conducted in-depth interviews with 12 principals through purposive and snowball sampling to gain insights into their leadership strategies. We found three significant strategies for leaders to foster school success: employing data to enhance teaching practices, promoting a positive school culture to engage the community, and implementing research-based practices to support culturally responsive teaching. Additionally, we identified strategies for scalable program development and optimizing student outcomes, including achieving proficiency in language and core subjects, leveraging cultural exposure and cognitive development, and engaging students through culturally relevant content. This study fills in the gap in the literature by providing intersection insights of strategic leadership, AI-powered learning, and Chinese immersion education for student learning outcomes and school effectiveness. Findings offer significant implications for leaders, policymakers, scholars, and practitioners to leverage AI-powered learning in immersion education settings.