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In this paper, we develop and propose a conceptual framework for understanding how artificial intelligence (AI) can be integrated into Indigenous interactive digital storytelling in ways that preserve cultural knowledge and sustain community authority. While recent advances in interactive storytelling and AI-generated narrative systems have expanded the design space for dynamic, adaptive, and user-responsive narratives, these innovations risk imposing external epistemologies when applied to Indigenous contexts. Drawing from previous research in Indigenous digital media, participatory design, ethical AI, Indigenous data sovereignty, and narrative theory, this paper conceptually positions AI as an “augmentative collaborator” embedded within culturally grounded storytelling practices. In doing so, we articulate three core principles behind this model including: Participatory Narrative Design, Cultural Responsiveness and Ethical AI, and Dynamic Adaptive Storytelling to guide the conceptualization and future development of AI-supported Indigenous storytelling systems. The conceptual framework proposed in this paper contributes theoretically to Human-Computer Interaction (HCI) research by re-centering relationality, protocol, and situated knowledge as foundational to AI-mediated narrative technologies.