The augmented reality (AR) has the potential in industrial design education to address spatial comprehension difficulties. Traditional methods in model-making involve trial-and-error approaches and clay modelling. To create tangible products, design students begin by drawing perspectives and orthographic sketches. CAD software helps visualise models but has steep learning curves. This paper examines how the AR interface improves 3D visualisation in model-making. The study examined how AR affects learning engagement in industrial design students using the hypothetico-deductive method. A group of Bachelor’s and Master’s students participated, and their responses were collected using Likert scale-based questionnaires (measuring perceived engagement, enjoyment, and acceptance) to generate numerical data for statistical analysis. Chi-square tests were conducted to analyse the significant differences in responses for various parameters. The conducted study revealed that design students either agreed or strongly agreed (p < 0.05) that the proposed AR interface is engaging, enjoyable, and acceptable. The mean values obtained from the Likert scale (ranging from 1 to 5) for perceived learning engagement, perceived learning enjoyment, and perceived acceptance were 4.04, 4.16, and 4.76 (which are more than 3.5 means agreed), respectively. The proposed artificial intelligence (AI)-enabled AR interface allows design learners to visualise virtual product models through intuitive interfaces. Student sketches can be mapped from orthographic to 3D spatial forms using extracted vertices and edges, which expedites 3D visualisation and streamlines decision-making.