The integration of Generative Artificial Intelligence (AI) in education has sparked transformative changes in the artistic-technological landscape, shaping both educational practices and industry perspectives. This paper deepen into the impact of integrating Generative AI within an interactive design course, focusing on digital artists’ development of technical skills alongside critical thinking essential for evaluating AI-generated outputs. The study navigates challenges surrounding the ethical use of AI in creative industries, addressing concerns about copyright and fostering responsible AI deployment. Professional-grade tools including ChatGPT 3.5, Unity game engine version 2022.3, and Visual Studio Code with C# plugins were utilized, ensuring a robust development process. The research methodology followed action research principles, emphasizing collaboration and iterative refinement. Data collection combined Likert scale and open-ended questions, enabling a comprehensive analysis capturing both quantitative trends and qualitative insights. Results indicate a significant shift in students’ perceptions, with 60% expressing positivity towards programming post-course, and 90% viewing Generative AI as a valuable tool. These findings align with previous studies highlighting AI’s potential to enhance computational thinking and problem-solving skills. However, the study acknowledges limitations due to sample size constraints, emphasizing the need for replication in larger cohorts for comprehensive validation. The study’s implications extend to AI literacy integration, metacognitive strategies, and prompt writing skills development in educational frameworks, facilitating optimal AI tool utilization. By reshaping negative perceptions and fostering critical thinking, this research contributes to bridging the perception-action gap and propels education and creative industries towards effective AI integration, innovation, and growth.