Recording and sharing life stories supports narrative identity and social connections in later life. While digital technologies can enrich storytelling through multimedia formats, emerging artificial intelligence (AI) tools introduce new opportunities alongside important concerns. This qualitative study examines how diverse stakeholders perceive the integration of AI tools, such as ChatGPT, into later-life storytelling. We conducted interviews with 36 participants across Australia, including 18 storytelling service providers and volunteers, 14 older storytellers, and 4 story recipients. Participants reflected on their storytelling experiences and how AI could, or should not, be incorporated into these practices. Participants identified benefits of AI tools in reducing labour, streamlining tasks, supporting drafting and structuring, and improving accessibility for people with diverse needs. However, they expressed concerns that efficiency gains could undermine key beneficial aspects of storytelling, including opportunities for reflection, healing, and creative expression. Participants emphasised that life stories are deeply personal; they were concerned AI may compromise individuality and authentic narrative voice. They further highlighted risks in AI handling sensitive or traumatic content, including threats to privacy and emotional wellbeing. Our research suggests that designing AI tools for later life storytelling requires balancing its benefits with its risks. Rather than focusing solely on generating polished products, AI should scaffold older adults’ meaning-making and identity work, supporting reflection while avoiding formulaic or emotionally flattened narratives. Moreover, AI tools for older adults need to be designed and used with care, adopting ethical, trauma-informed approaches where systems anticipate potential triggers and enable appropriate, user-controlled responses to sensitive content.