ABSTRACT The emergence of artificial intelligence has necessitated a transformation in pedagogical methodologies. This study evaluated the integration of gamified project-based learning (GPBL) and artificial intelligence-generated content (AIGC) tools in enhancing information literacy education. The primary objectives were to explore the relationship among students’ learning experiences, information literacy, creativity, and engagement in an integrated learning environment. Using an explanatory sequential design with surveys and interviews, first-year university students (n = 36) from the School of Art and Design participated. Results indicated that students perceived moderately high levels of engagement(3.72) and creativity(4.11) during the GPBL activities, with positive emotions contributing significantly to motivation. Moreover, information literacy skills have substantially improved, such as in information retrieval, using AIGC tools, and understanding the ethical aspects of AI technology. A process model illustrated how positive emotions, motivation, creativity, engagement, and information literacy were linked in a GPBL-incorporating AI setting.