Integration of Artificial Intelligence (AI) in the design process is a growing area of research interest. Three years after its public launch in 2022, AI has already established itself as the most disruptive tool revolutionizing how designers conceptualize, iterate and innovate. As AI technologies continue to evolve, it is pertinent that design students are acquainted with the potential of the technology and how it can be integrated in their professional practice. The objective of this paper is to explore the role of AI as a conceptualization and research tool in interior design. We aim to examine its effectiveness in enhancing the ideation process and facilitating collaboration and knowledge sharing in intercultural design teams. The case study presented is a collaborative online international learning project (COIL) with the participation of interior design students from the University of Monterrey (Mexico) and Wayne State University (USA). Students were involved in experimentation with various AI tools and platforms in the early stage of designing children's spaces in commercial interiors. Through meticulous documentation and evaluation of all design variations generated were gained valuable insights on the impact of AI on the evolution of the ideas. To collect research data on how students' creativity, idea exchange and decision-making were affected, surveys and reflection writings were distributed. The findings confirmed that students developed a greater understanding of AI as an essential tool in the design process. They acquired skills in utilizing it to aid the decision-making during the conceptualization phase. Furthermore, AI fostered their self-confidence in communicating within culturally diverse teams. The conclusion discusses the challenges encountered and lessons learned from the integration of AI technologies into the learning process.