AI in API Design involves using artificial intelligence to assist in the creation of well-structured, consistent, and user-friendly APIs. AI tools, including LLMs, can help generate API specifications from high-level descriptions, ensure adherence to design standards, and even create mock servers for testing. By analyzing usage patterns, AI can also suggest improvements to an existing API design to better meet developer needs. This streamlines the design process, improves the quality of the API, and enhances the overall developer experience for those who will consume it.