Abstract: Focusing on creativity, this chapter explores how Generative AI blurs the boundaries between human imagination and machine capability. It examines applications in digital art, literature, music, and design, illustrating how AI serves as both collaborator and catalyst in artistic processes. Psychological and philosophical aspects of machine creativity are discussed, questioning notions of authorship, originality, and aesthetics. Through case studies of AI-driven art platforms and collaborative design tools, the chapter demonstrates how generative models expand the landscape of creative expression while challenging traditional definitions of artistry. Keywords: Generative AI, Computational Creativity, Human–AI Co-Creation, AI-Generated Art, Creative Expression, Digital Aesthetics