The work aims to explore the foundation and impact of Artificial Intelligence Generated Content (AIGC) technology in the integration of Suzhou jade carving into modern design. By analyzing how AIGC technology promotes the fusion of traditional craftsmanship with modern design, practical suggestions are provided for the innovative development of arts and crafts. The main method used is case analysis. By combining existing Suzhou jade carving works with examples of AIGC technology applications in jade carving art, the work delves into its specific current situation and impact in four aspects: thematic content, technical concepts, formal language, and cultural memory. At the same time, the possibilities and potential issues of AIGC technology in promoting the combination of traditional jade carving art with modern design elements are examined. AIGC technology provides a new perspective and approach for the innovative development of Suzhou jade carving. With AI technologies such as T2I diffusion models and large language models as the core drivers, the work derives innovative paths for the integration of traditional jade carving art into modern design and the overall process of AIGC technology-assisted jade carving art creation, and analyzes its impact critically. While emphasizing the use of digital technology to protect intangible cultural heritage and traditional arts and crafts, it is important to be vigilant against the risks of technology misuse. As a new creative driving tool and a catalyst for the integration of culture and arts, AIGC technology provides new solutions for the contemporary process of traditional crafts in the intelligent era.