This study explores the application of Artificial Intelligence Generated Content (AIGC) in ink-wash animation, a unique Chinese art form that has evolved through the traditional hand-drawn period, the digital exploration period, and now the AIGC-driven period. AIGC technology offers new possibilities for ink-wash animation by enabling efficient content generation and diverse artistic expressions. However, challenges remain in areas such as narrative coherence, dynamic generation consistency, and artistic expressiveness. This study aims to investigate how AIGC empowers ink-wash animation and provides innovative solutions for integrating artificial intelligence with traditional art. Using case studies and experimental methods, the research focuses on the short film Dragon Gate, leveraging the self-developed “InkStone” model to analyze AIGC’s capabilities in brushstroke refinement, style transfer, and production efficiency. The findings reveal that AIGC can significantly enhance the creative process through multimodal input and human-AI collaboration, but challenges in expressive subtlety, motion rhythm, and narrative continuity still require further technical advancements and artistic interventions. This study provides empirical insights into AIGC’s potential for ink-wash animation and outlines future directions for technological optimization, artistic integration, and interdisciplinary collaboration to promote the digital innovation and global reach of this traditional art form.