In recent years, the rapid development of AIGC technology has brought both opportunities and challenges to the revitalization design of China's excellent traditional culture and regional culture. The work aims to employ methods such as survey research and case study to systematically explore the positioning, application methods, and pathways for reconciling contradictions of generative artificial intelligence in the revitalization design of China's excellent traditional culture and regional culture, thus constructing a new model of cultural revitalization design that critically assimilates AIGC technologies and tools, integrates them through critique, and innovates through sublation. Firstly, the applications of AI in cultural revitalization are summarized into three modes (processing optimization and acceleration, advanced creative expression and public collaborative co-creation) based on design intent. Secondly, the design approach of AI-revitalized culture is examined across four stages of semantic extraction, style composition, modal interaction, and work dissemination. AIGC technology can effectively enhance the efficiency of cultural revitalization, expand creative boundaries, and enrich public participation experience. However, there are also three inherent tensions between AIGC technology and cultural revitalization design, including "speed versus stability", "modern versus traditional" and "form versus meaning", which requires design rhythm control, historical repositioning of culture, and semantic restoration of design. Grounded in Heidegger's concept of "Gestell" regarding technology, this work not only validates the theoretical explanatory power of "Gestell" in the digital intelligence era, but also injects a Chinese indigenous perspective and contemporary practical experience into AIdriven revitalization design, exploring a reconciliatory path for AIbased cultural revitalization design in the age of "Gestell". Guided by humanistic spirit and human-centred value judgments, with AIGC tools as collaborative partners for trial and error exploration and designers acting as interpreters of cultural value, supplements to design solutions, and continuous iterators, a new AI-empowered cultural revitalization design model characterized by critical absorption, integration through critique, and innovation through transcendence is created.