Although you can use Illustrator or Photoshop files with Character Animator, note the following differences:
The tutorial said you could create your characters in Illustrator but Illustrator CC doesn't have layer folders like the example file because the created one was made in Photoshop. If you have made your characters in Illustrator and you want to be able to use Character Animator, do I have to bring all these layers into Photoshop or do the folders not matter? THANKS!
You can use Illustrator. Just use groups (of paths), layers, or sublayers.