Abstract
This study investigates how undergraduate students perceive artificial intelligence (AI) integration during a structured Design Thinking cycle for educational game development, framing the AI-infused workflow as a blended learning environment. Eighty-two students in 14 teams completed a five-week project ending in a playable prototype and pitch. A convergent mixed-method design combined a 15-item perception scale, a three-item Design Thinking experience measure, team focus groups, reflective logs and artefact analysis. Exploratory factor analysis supported a four-factor structure: perceived usefulness, creativity support, trust and verification and ethical concerns. Results from multiple regression analyses showed that perceived usefulness and creativity support jointly accounted for 49.2% of variance in overall Design Thinking experience, while ethical concerns exerted a significant negative effect. AI use was significantly higher during prototyping and ideation than during empathise and define stages. Also, teams with higher AI reliance produced stronger prototypes but showed no advantage in reflective justification. These findings indicate that AI integration benefits are stage-dependent and that productivity gains do not automatically translate into deeper learning. The study contributes a conceptual model for AI-infused Design Thinking as a smart blended learning environment and empirically grounded design principles for responsible AI integration in project-based courses.