The growing impact of AI on various fields, including art, highlights the importance of integrating AI learning into art education. This work investigates whether traditional art lessons can be adapted to meaningfully incorporate AI, focusing on its application to art-making practices. We adapted a character design activity to incorporate AI at different stages, such as using AI for creating references, getting feedback, visual design, animation, and personality design. We developed a character design learning activity which was supplemented by a code notebook and a front-end character design tool. 39 middle and high school students participated in this activity during two in-person Art and AI workshops. Analysis of creative outputs, knowledge surveys, and classroom discussions showed that students showed significant shifts in their understanding of AI as a creative collaborator, their art making practice, and their confidence with using AI tools. Learners demonstrated different creative styles while adopting AI into their character design. This approach demonstrates the potential for integrating AI into art lessons and offers a scalable framework for other non-CS subjects.