Aceh's tourism industry is currently experiencing growth, supported by technological advancements that are positively impacting various sectors, including tourism. However, the use of artificial intelligence (AI) in the creative industry, especially character design, remains a controversial topic due to concerns over originality and intellectual property rights (IPR). The objective of this study is to design a character as a virtual guide for an Augmented Reality (AR) application in tourism in Banda Aceh Old Town. The methodology involves character design using digital approaches and AI support. The results discuss the design process using digital methods and AI support, as well as opportunities and challenges such as efficiency, creativity, and copyright issues. The study concludes that conceptualization and creative direction should remain in the hands of designers, with AI acting as a supporting tool. However, further research and policy development is needed to address the limitations and ethical aspects of AI use in the creative industries, especially with regard to copyright protection and intellectual property rights.