This research investigates the possibility of including generative AI in the context of project-based learning. The use of AI tools is discussed in relation to student project work as a component of undergraduate Information Systems education. A framework of two sequential courses is utilized, which is related to working on the same projects, creating a small information system. The initial course emphasizes the early stages of information systems analysis and design, while the subsequent one explores the organizational aspects of information system development through the lens of project management. In both courses, students’ projects consist of assignments that require the use of generative AI to solve specified tasks. The research examines the impact of AI on students’ project work. The findings presented can be utilized by educators and institutions to enhance the use of generative AI in academic environments.