This study explores how Microsoft Copilot, an artificial intelligence (AI) tool, enhances creativity, cultural integration, technical proficiency, and intellectual property awareness among art and design students in Kuwait. Using a mixed-methods approach grounded in constructivist and social learning theories, the research combined surveys, focus groups, and rubric-based evaluations across categories such as cultural relevance, creativity, technical execution, presentation, and intellectual property considerations. Findings revealed that Copilot significantly boosted students' creativity by enabling innovative designs that blend traditional Kuwaiti cultural motifs with modern aesthetics. The tool also improved technical execution, with students demonstrating increased digital competence and polished final output. Furthermore, students reported enhanced understanding of intellectual property principles, such as ownership, originality, and ethical use of AI-generated content, highlighting the importance of addressing these issues in AI-assisted education. Survey responses showed high levels of satisfaction, with 93% of participants expressing confidence in their outcomes, although challenges such as uneven team participation and varying technological proficiency persisted. This study highlights the importance of structured guidance, cultural contextualization, and intellectual property literacy in adopting AI tools for art education. These insights contribute to the growing discourse on integrating pedagogical technology and offer practical strategies for educators in culturally diverse settings.