This study explores the synergy between parametric design and generative AI in interactive lighting installations, using Rhythm from the 2024 Guangzhou International Light Festival as a case study. A reusable workflow was developed, integrating ChatGPT and Midjourney for concept generation, parametric form optimization in Grasshopper, real-time rendering with Stable Diffusion to simulate implementation, and final site integration and fabrication detailing in Rhino. The study demonstrates that generative AI fosters diverse early-stage design exploration, while parametric tools ensure geometric control and construction feasibility. Their integration compensates for the randomness and structural imprecision of AI-generated results while enriching parametric modeling with greater design diversity, achieving both flexibility and accuracy. The design process of Rhythm validates this approach’s effectiveness in improving efficiency, enhancing interactivity, and optimizing implementation, offering new insights into the convergence of generative AI and parametric design in digital fabrication.