Tech Mahindra, a leading global provider of technology consulting and digital solutions to enterprises across industries, in collaboration with MIT Technology Review Insights, released a joint report that emphasizes how enterprises can leverage artificial intelligence (AI) to enhance sustainability in product design and development. The report highlights that enterprises combining AI with sustainability in their design and prototyping processes will gain a significant competitive edge.

The joint study finds that while AI adoption in product development is on the rise, many organizations are still in the exploratory stage. Full-scale implementation remains limited due to cost constraints, knowledge gaps, and rapidly shifting market dynamics. At the same time, increasing regulatory and societal expectations are putting corporates under pressure to reduce environmental footprints while continuing to innovate.

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Narasimham RV, President – Engineering Services, Tech Mahindra, said, “Enterprises today are under increasing pressure to innovate while reducing their environmental footprint. At Tech Mahindra, we empower enterprises to achieve this by embedding AI into the earliest stages of product development through tools like digital twins, simulations, and rapid prototyping. The joint study with MIT Technology Review Insights reinforces the importance of measurable, AI-driven frameworks that reduce emissions and help businesses future-proof their models responsibly.”

According to the research, nearly 80% of a product’s environmental impact is determined at the design stage. AI-powered tools such as digital twins, simulations, and rapid prototyping can optimize designs for functionality, manufacturability, and sustainability, significantly reducing waste, emissions, and resource usage.

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Despite these opportunities, the study identifies key challenges enterprises face in embedding sustainability into product development. These include:

• Customer confusion about what makes a product truly sustainable
• Rapidly changing regulations and standards, a shortage of specialized talent
• The absence of measurable sustainability metrics to track progress.

The joint report emphasizes that by overcoming hurdles and adopting measurable AI-led frameworks, organizations can harness sustainability as a driver of innovation, ensuring long-term business resilience and contributing positively to the planet.