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It literally depends on what they physically are doing. Experience design is not the same thing as an Art Director. I can tell you what the titles may be if you tell me what this person is/wants to do.
Caveat - I'm at one of the larger (until recently) independents, but we are full service. If you're talking the big guys, then my advice might not be useful.
It really depends on the agency. They should look at other people in the role at the agency and see what they’re using on LinkedIn.
So that department is picking titles - this person was offered a choice. What she's doing is mostly digital design with UX/UI elements tied in but she's still getting art director type tasks like concepting executional ideas for a campaign. We're obviously a full service trying to beef up our digital team, hence the title problem. She wants to stay digital leaning but is worried that calling herself a designer will put her lower on the totem pole.
I’d probably just stick with art director so she doesn’t get shoehorned in to only digital at later jobs. She can always explain how digital it is below on a resume etc
C1's feedback is probably the way your friend will want to go.
For us, design and UX are two different departments, but sit together. We have UX specific designers, with the strategy people being UX architects. The CD that used to run the department was called an Interactive CD.
If your friend wants to stay in digital specifically, then it may help in future positions to have "digital" or "interactive" in their title if going to another shop. But if they don't know, just stick with art director.
And never take the lower title.