With the rising advancement of Artificial Intelligence Generated Content (AIGC) tools such as Midjourney, ChatGPT, Meta and Luma, the design industry is undergoing a new shift. Thus, the great influence of the AIGC application has taken place in the design education area, followed by the question, “How does AIGC integration impact design education”? This study aims to uncover the latest progress and identify the research gap in the design pedagogy area, despite the lack of research on how AIGC integration affects design education in contrast to the explosive growth of ChatGPT research. This study explored impactful and most up-to-date articles for systematic analysis. It reveals that AIGC can enhance students’ design efficiency by empowering ideation, prototyping and personalization. However, further study is called for developing strategies for seamlessly integrating AIGC into design curricula and pedagogical practice and the educational ethics and parity issues during the AIGC integration in design education.