Auto-trace PSDs separately by group/layer
Transfer/convert Photoshop documents via auto-trace to illustrator vector shapes while retaining general group/layer hierarchy. Any shape layers in PSD should be converted to Illustrator shapes.
Example: Sketch a new puppet for Character Animator in Photoshop, open the PSD in Illustrator, use auto-trace to convert each layer separately, maintaining relative group/layer hierarchy. Clean up vector paths, use Illustrator puppet in Character Animator at any scale.