Teens are increasingly interacting with AI systems in their everyday lives, yet many have a limited understanding of how these technologies function or what their limitations are. This highlights the need for early AI education. To create effective learning programs, it is crucial first to explore how teens perceive AI. This study examines the perceptions of middle school students about AI and their level of AI literacy, while also analyzing how factors such as demographics, attitudes, and prior training in digital skills influence these perceptions. Our findings show that students commonly view AI as tools or programs that deliver information or answers. Overall, participants demonstrated a moderate level of AI literacy and generally held neutral attitudes toward AI. Notably, gender, grade level, and digital skills training emerged as key influences on both AI literacy and perceptions. Furthermore, student attitudes, both positive and negative, were significantly associated with their level of AI literacy, with marked differences observed based on gender and previous exposure to training in digital skills.