The growing integration of Artificial Intelligence (AI) in media is reshaping media education. As AI-driven tools become more prevalent, media professionals must develop AI literacy—understanding both the technical and ethical implications of these technologies. Instead of passively adopting AI, students should critically engage with its applications in creative fields. Text-to-image models like Stable Diffusion, DALL·E, and Midjourney have revolutionized digital content creation. Since 2014, advances in Generative Adversarial Networks (GANs) have driven AI-generated imagery, making it widely accessible across industries, from advertising to content creation. Artists such as Mario Klingemann and Boris Eldagsen integrate AI into their work, influencing both creative practices and media education. AI tools streamline idea generation but raise concerns about creative dependency. Media education must balance AI proficiency with ethical awareness, addressing bias, copyright, and authorship issues.

Based on a case study at the University of Applied Sciences Upper Austria, we will provide an insight into preliminary results on a comprehensive study about AI literacy in higher media education. The “Design Tools” course in the first semester of the Digital Arts and Media Technology and Design program serves as an example of this approach. In this course, students participated in four creative assignments designed to explore AI’s role in the design process. One of the projects involved conceptualizing a personal retreat space—a visually and emotionally immersive environment where design aspects like spatial composition, lighting, and ambiance played a crucial role. To assist in the early ideation phase, students could experiment with AI-generated images, using them as a foundation for their final designs, which were further refined using professional 3D modeling software like Blender or Autodesk Maya. This hands-on experience allowed students to understand AI as more than just a generative tool; it became an integral part of their creative workflow. By engaging with AI-driven design methods, they gained insight into both the strengths and limitations of these technologies. AI tools were permitted for all project submissions, particularly in tasks emphasizing personal expression—such as designing a personal logo, creating a collage or montage reflecting their identity, and other self-referential design challenges. The primary goal was to ensure that, despite AI’s involvement, the final works retained a strong personal and artistic signature.

To assess AI’s role in creativity, students completed surveys before and after project work, reflecting on their evolving perspectives. The study examined AI’s impact on creative industries and the most effective tools for students. Findings provide insight into how emerging designers interact with AI and how education can foster critical engagement.

As AI continues to play a larger role in media and design fields, higher education must take an active role in preparing students for this evolving landscape. By integrating AI into coursework while fostering critical reflection, media education can ensure that future professionals not only harness the potential of AI but also navigate its ethical and creative challenges responsibly.

Keywords: AI literacy, higher media education, generative art, artistic expression.