Industry

How AI Powers Sustainable Product Design and Innovation?

Tech Mahindra and MIT Technology released Insights.

Tech Mahindra in partnership with MIT Technology Review Insights, has released a joint report showcasing the growing role of artificial intelligence (AI) in driving sustainability in product design and development. The study underscores how enterprises adopting AI-driven tools like digital twins, simulations, and rapid prototyping can significantly reduce waste, lower emissions, and gain a competitive advantage.

AI at the Core of Sustainable Innovation
The report reveals that nearly 80% of a product’s environmental impact is determined at the design stage. By integrating AI into product development, organizations can optimize for functionality, manufacturability, and environmental impact simultaneously. This makes AI a critical enabler of green technology, sustainable innovation, and eco-friendly product design.

Market Pressures and Opportunities
While AI adoption in product development is accelerating, many enterprises remain in early exploration phases due to high implementation costs, lack of expertise, and rapidly evolving market demands. At the same time, rising regulatory requirements and increasing consumer expectations for eco-friendly products are pushing companies to rethink their approach to sustainability.

Narasimham RV, President – Engineering Services at Tech Mahindra, explained, “Enterprises today face the dual challenge of innovating while reducing their environmental footprint. At Tech Mahindra, we embed AI in the earliest stages of product design through digital engineering, intelligent simulations, and digital twins. This approach not only reduces emissions but also future-proofs business models responsibly.”

Key Challenges to Overcome
The study highlights three critical barriers to embedding sustainability into product lifecycles:

  • Customer confusion around what defines a truly sustainable product
  • Rapidly changing regulations and standards across industries
  • Shortage of skilled talent and absence of measurable sustainability metrics

AI as a Driver of Business Resilience
The joint report emphasizes that enterprises adopting AI-powered sustainability frameworks can transform challenges into opportunities. By leveraging AI for product lifecycle management, companies can enhance competitiveness, ensure long-term business resilience, and make meaningful contributions toward global sustainability goals.

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