Issue with sed command

Hi,

I have to replace the character AL2 with AL16 which I have in one of my text file .
I used the sed command like this
sed 's/sed 's/AL2/AL16/g' test_carr.dat>test_carr1.dat

But it is not replacing this value to the output file.
The test_carr.dat file contains data like this
cat test_carr.dat
AL2.mac_cd LIKE '%4M%' OR AL2.mac_cd LIKE '%CM%' OR AL2.mac_cd LIKE '%FJ%' OR AL2.mac_cd LIKE '%IR%' OR AL2.mac_cd LIKE '%KU%' OR AL2.mac_cd LIKE '%OM%' OR AL2.mac_cd LIKE '%PG%'
Could you please help me to resolve this.?

sed 's/sed 's/AL2/AL16/g' test_carr.dat>test_carr1.dat
# should be:
sed 's/AL2\./AL16\./g' test_carr.dat>test_carr1.dat

to start with.