How Designers Envision Value-Oriented AI Design Concepts with Generative AI

As AI integrates into design practice, designers increasingly use generative AI tools to envision AI-enabled solutions, positioning AI as both design tool and design material. This dual role creates recursive value tensions distinct from traditional design work. We engaged 18 designers in a concept envisioning activity and interviews to understand how they navigate values and recognize potential harms in this context. Our analysis reveals that (i) designers engage in reciprocal reflection-in-action with AI; (ii) this process surfaces multi-level value tensions across tool, designer, and concept; (iii) designers demonstrate greater attunement to harm recognition as a primary design signal than to articulating positive value fulfillment; and (iv) designers exercise anticipatory judgment through meta-design reasoning about how tool assumptions risk propagating into designed concepts and future use contexts. We extend Schon's reflection-in-action framework and discuss implications for redesigning AI-mediated design tools, supporting harm-centered reasoning, and positioning design as foundational to AI development.