Emerging technologies are transforming education, necessitating research on their optimal integration. This article introduces an Intelligent Virtual Reality (IVR) approach that incorporates Generative Artificial Intelligence (GAI) through two GAI-powered pedagogical characters, aiming to address educational needs. This qualitative descriptive research had two phases: Needs Analysis and Pedagogical Design. The needs and ideas, collected from 66 educators, were classified into three categories: AI acting as a character, emerging technologies to assist student learning, and emerging technologies to help teachers. The Pedagogical Design involved integrating GAI and VR in a sustainability education setting, and developing two virtual characters, Tero and Madida, as an information source and a learning companion, respectively. Evaluation through iterative testing with domain experts and interviews suggested that these characters met 9 out of 12 identified needs, highlighting their potential to enhance higher education learning experiences. Future research could explore further refinements to address the remaining needs.