Let $A$ be an AI algebra; that is, $A$ is the $\mbox{C}^{*}$-algebra inductive limit of a sequence $$ A_{1}\stackrel{\phi_{1,2}}{\longrightarrow}A_{2}\stackrel{\phi_{2,3}}{\longrightarrow}A_{3} \longrightarrow\cdots\longrightarrow A_{n}\longrightarrow\cdots, $$ where $A_{n}=\bigoplus_{i=1}^{k_n}M_{[n,i]}(C(X^{i}_n))$, $X^{i}_n$ are $[0,1]$, $k_n$, and $[n,i]$ are positive integers. Suppose that $A$ has the ideal property: each closed two-sided ideal of $A$ is generated by the projections inside the ideal, as a closed two-sided ideal. In this article, we give a complete classification of AI algebras with the ideal property.