304 stainless steel demonstrates a low thermal conductivity and work hardening characteristics, resulting in its processing, and will adhere to the tip of the tool; as well as the phenomenon of chipping, shortening the life of the tool. AlTiN coatings are representative of coatings applied to carbide tools. In this paper, AlTiN coatings with different arc current processes were deposited on carbide milling inserts using arc ion plating. The microstructure, mechanical properties, and milling properties of the coatings were investigated by using the SEM, EDS, XRD, scratch meter, friction and wear meter, and vertical machining center. The findings revealed that all coatings displayed columnar crystal growth, free from cracks and voids. With an increasing arc current, there was a notable increase in surface droplets, pits, and coating thickness. The coating deposited at a 140 A arc current showed a pronounced (200) orientation preference. The adhesion force peaked at 56.0 N with a subsequent decline, and the friction coefficient hit its lowest point of 0.429 at 140 A, contrasting with its highest value of 0.55 at 160 A. After 39 min of dry milling, the tool with a 140 A AlTiN coating exhibited minimal wear of 0.196 mm, just below the 0.2 mm failure threshold, indicating superior performance at this arc current setting.