Persistent deficits in basic reading skills continue to challenge educational systems worldwide, affecting learners’ academic progress and broader life opportunities. This study employed an Exploratory Sequential Mixed Methods Design (ESMMD) to investigate reading difficulties among students in Tacurong City and to develop an AI-powered reading intervention program tailored to address these challenges. Findings revealed that learners faced multifaceted difficulties encompassing decoding, fluency, vocabulary, and comprehension. Decoding challenges hindered recognition of words and letters, particularly in English, which subsequently slowed reading speed and hindered expressive reading. Fluency deficits manifested as hesitant and slow reading, leading to reduced focus and disengagement, particularly with longer texts. Limited vocabulary knowledge further compounded comprehension issues, leaving learners dependent on memorization rather than meaningful understanding. Emotional and motivational factors, including anxiety, low confidence, and fear of mistakes, exacerbated these struggles, creating a cycle that limited participation and engagement. The study further demonstrated that these challenges were interrelated, affecting learners’ overall reading achievement and highlighting the need for comprehensive, skill-focused, and affective-support interventions. The AI-powered reading intervention program was evaluated as highly effective, particularly through its adaptive learning features, real-time feedback, interactive content, and user-friendly design. Personalized exercises, instant progress tracking, and gamified reading activities enhanced learner engagement, improved reading fluency, and fostered motivation, while the platform’s accessibility ensured inclusivity for students with varying digital literacy levels. Overall, the findings underscore that addressing reading difficulties requires a holistic approach combining structured skill development, emotional scaffolding, and technology-enhanced learning. Integrating AI-powered interventions into literacy instruction can provide individualized support, sustain engagement, and build learners’ confidence, ultimately improving reading outcomes and promoting a positive, empowering reading experience.