This study examined the effects of creating English picture books using generative artificial intelligence (AI) on Korean high school students’ reading and writing skills, AI literacy, and self-efficacy. Forty-five students were divided into two groups and participated in tasks that included selecting a character from English-speaking cultures, generating images using Bing Image Creator, drafting and revising stories with ChatGPT, and creating audiobooks with ClovaDubbing. Reading and writing skills were evaluated using pre- and post-tests, and AI literacy as well as affective factors, including selfefficacy, were measured through surveys. The results indicated a significant improvement in students’ writing skills and self-efficacy, whereas reading skills did not demonstrate statistically significant progress. The study underscores the potential of generative AI as a tool for enhancing writing skills, AI literacy, and self-efficacy in language learning. However, it also emphasizes the need for further pedagogical efforts to design instructional strategies that effectively improve reading skills. These findings offer practical guidance for integrating generative AI into EFL education to enhance language learning and AI literacy.