The connotation form of intangible cultural heritage is still homogenized and has no obvious characteristics in terms of mining. Especially under the opportunity of new AI digital large model technology, expanding the innovative development and effective utilization of intangible cultural heritage resources and conducting research on the path of activation methods have become an important tool for inheritance and dissemination of intangible cultural heritage. Starting from the semiotics theory, based on three different connotations of class (C), theme form (T), and surface (S), a CTS method was proposed to systematically analyze the Huishan clay figurine cultural symbols and innovate in the digital design process. With the support of AI digital technology, a new digital translation process and method for Huishan clay figurine culture were proposed, along with corresponding application strategies based on practices in relevant projects. The STC method based on semiotics opens up a new and sustainable development path for the protection and development of Huishan clay figurine culture, providing a new transition idea for continuation of inheritance methods and design innovation of cultural resources.