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I have a field called ac_id, I want to update this field with combination of other two fields, Other two fields are lookup fields.

I am using process builder to update, the formula used for the update is here

Domicile_Country__c &" "& AIC_Currency__c but it is updating with the record ids, I'm stuck please help me

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It will update with id's because you haven't specified which field to be used. Your formula should be something like this: Domicile_Country__r.Field_Name__c &" "& AIC_Currency__r.Field_Name__c

Sample example: I tried on my Dev org to update Name field of Opportunity using Process builder. I used this Formula: [Opportunity].Account.Name + " " + [Opportunity].Account.Id. See below image for reference: enter image description here

And this is how your Output looks: enter image description here

Specify the fields which you want instead of just specifying objects.

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