AI and Sustainability in Product Development: 2025 Whitepaper

Smarter Designs Done Sustainably with AI

Companies that produce goods are facing significant pressure to reduce their environmental footprint. Increasingly, consumers are leaning towards products that are better for the planet. Enterprises today must integrate sustainability at the design and development stage to navigate these regulatory, market, and societal pressures and meet this sustainability imperative with ease. Good sustainable design that includes every aspect of the product development value chain can help minimize energy and water consumption, waste and emissions by using renewable, recyclable materials ethically sourced throughout the supply chain.

In this whitepaper, we explore how AI and generative AI tools can enable smarter design choices, measure environmental impact, and generate innovative solutions. Digital twins, simulations, and rapid prototyping can optimize designs for functionality, manufacturability, and sustainability. Using AI to enhance sustainability in product development can help set businesses up for the future—both environmentally and commercially.

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Key Highlights

GenAI can unleash a whole new level of creativity for sustainable designs

GenAI-driven research and development can help create multiple novel ideas and design options that can be optimized for minimal material use, circularity, and energy efficiency.

AI algorithms harness immense potential to improve lifecycle management

AI algorithms can help measure environmental impact by streamlining data collection, analysis, and interpretation. This makes product lifecycle assessments more efficient, accurate, and accessible.

AI can screen millions of material combinations faster than we’ve ever seen before

What would usually take years to process, AI can screen in a span of days. This helps with rapid identification of sustainable alternatives.

Many companies are still hesitant to jump on the AI and sustainability bandwagon

While adoption is rising, many companies remain in the exploration phase; full-scale implementation is held back by market, cost, and knowledge barriers.

Sustainability is the only way forward for enterprises

Truly sustainable brands are poised to seize competitive advantage as sustainability promotes trust—especially among younger consumers.

Strategies for Sustainable Design

80% of a product’s sustainability impact can be determined even before it is built. Prioritizing environmental measures as a core design principle will ensure they are incorporated throughout a product’s entire life cycle.

Here are six complementary strategies that can help companies understand and address the environmental impact of a product across its lifecycle, from sourcing to end of life. 

Earth RingEarth
6

SUSTAINABLE DESIGN STRATEGIES

Towards Greener Thinking
Icon 1

1. Circularity

  • Design for disassembly
  • Design for end-of-life collection
  • Design for reuse
  • Enable material traceability
  • Enable material homogeneity
Icon 2

2. Product Efficiency

  • Variable energy consumption
  • Energy consumption efficiency
  • Material consumption efficiency
  • Change consumer behavior
Icon 3

3. Longevity and Effective Usage

  • Design for repairability and maintenance
  • Design for upgradability and adaptability
  • Design to last
  • Design for remanufacturing
  • Design for multiple uses
Icon 6

4. Green Supply Chain

  • Frugal processes and operations
  • Detoxified processes
  • Standardization and modularity
  • Design for logistics
Icon 5

5. Next-best Materials Selection

  • Renewable and biodegradable material
  • Recycled material
  • Recyclable material
  • Lightweight material
Icon 4

6. Dematerialization

  • Content reduction
  • Design for value
  • Digitization
  • Weight reduction
  • Minimal material and packaging
  • Generative design
Earth RingEarth

Source: Compiled by MIT Technology Review Insights based on data from BCG Analysis, 2025

6

SUSTAINABLE DESIGN STRATEGIES

Towards Greener Thinking
Icon 1

1. Circularity

  • Design for disassembly
  • Design for end-of-life collection
  • Design for reuse
  • Enable material traceability
  • Enable material homogeneity
Icon 2

2. Product Efficiency

  • Variable energy consumption
  • Energy consumption efficiency
  • Material consumption efficiency
  • Change consumer behavior
Icon 3

3. Longevity and Effective Usage

  • Design for repairability and maintenance
  • Design for upgradability and adaptability
  • Design to last
  • Design for remanufacturing
  • Design for multiple uses
Icon 6

4. Green Supply Chain

  • Frugal processes and operations
  • Detoxified processes
  • Standardization and modularity
  • Design for logistics
Icon 5

5. Next-best Materials Selection

  • Renewable and biodegradable material
  • Recycled material
  • Recyclable material
  • Lightweight material
Icon 4

6. Dematerialization

  • Content reduction
  • Design for value
  • Digitization
  • Weight reduction
  • Minimal material and packaging
  • Generative design

Source: Compiled by MIT Technology Review Insights based on data from BCG Analysis, 2025

Source: Compiled by MIT Technology Review Insights based on data from BCG Analysis, 2025

At Tech Mahindra, we leverage Siemens’s Teamcenter X Product Cost Management solution, a hybrid cloud platform designed to help manufacturers calculate cost, profitability, and carbon footprint. This helps our customers identify design aspects that are carbon intensive and assess whether they are necessary or can be changed.

AI in the Real World

Siemens: Redesigning a Robot Gripper

With the help of AI-powered generative design tools, Siemens, a global market leader in engineering, industrial automation and software, reduced a robot gripper’s part count by 84% and overall weight by 90%. This ensured a potential saving of up to 3 tons of CO2 emissions per robot per year, which was then scaled across millions of industrial robots across the world, representing a significant milestone in sustainable manufacturing.

AI is fundamentally reshaping how sustainability is integrated into product development. By enabling smarter design choices, real-time impact assessment, and circular design, AI tools empower businesses to create innovative products that meet both market and environmental demands.

Pina Schlombs

Sustainability Lead and Industrial AI Thought Leader, Siemens

84%

Reduced a robot gripper’s part count

90%

Reduced overall weight

3 Tons

Saving CO2 Emissions

Western Digital: Automating Lifecycle Assessments

Working with Sluicebox, Western Digital, a leader in data storage solutions, leverages AI to develop lifecycle assessments that eliminates 99% of manual work and enhances accuracy by 30%. This ensures absolute visibility into carbon footprints across the product value chain.

This creates visibility, that can drive actions and brings valuable information to our customers.

Jackie Jung

Vice president, global operations strategy and planning, corporate sustainability at Western Digital.

99%

Eliminates Manual Work

30%

Enhances Accuracy

Microsoft: Transforming Material Discovery Sustainably

In partnership with the US Department of Energy, a team at Microsoft, the largest software maker, used Azure Quantum Elements to discover a new material that could supplement lithium. This platform screened over 32 million material candidates in less than a week to discover a new battery material that could significantly minimize reliance on traditional lithium extraction.

32 Million

Material candidates screened

Less than 1 week

Screening process was completed

One

A new material was identified

Essential AI Tools for Sustainability

Digital-twins

Digital Twins and Simulations

AI-powered digital twins and simulation tools that enable automated and dynamic product lifecycle  management help designers model the entire lifecycle and predict environmental impact. Such tools provide feedback on the environmental footprint of design choices and facilitate data-driven decision-making to minimize negative impacts across the value chain. 

generative-design

Generative Design

AI algorithms have the potential to explore infinite design permutations within specified constraints to generate various options that are inherently more sustainable.

Integrated-carbon

Integrated Carbon Accounting

AI platforms can help companies calculate a product’s carbon footprint at a granular level, enabling them to set eco-design strategies, take early design decisions with a focus on value and cost, and increase efficiency and transparency across the value chain.

The majority of the industry still perceives sustainable design aspects as independent of product performance or cost, when in fact sustainable design, when done right, can enable performance, supply chain resilience, and cost too.

Jackie Jung, Vice President,
Global Operations Strategy & Planning,
Corporate Sustainability, Western Digital

Challenges of Implementing AI in Design and Manufacturing

Despite a promising 39% of design and manufacturing companies that use AI, there are myriad barriers that hinder its widespread adoption in product development.

Consumer Confusion and Consciousness

Consumer interest may be on the rise, but there is limited willingness to pay premium prices for sustainably developed products. Greenwashing and conflicting information can overwhelm and confuse consumers further.

Lack of Regulatory Pressure

Regulations around AI use are still evolving and there is little pressure to comply. This keeps sustainable products as an option rather than an imperative.

The biggest barrier is that it's still perfectly acceptable to sell a product or service that has avoidable environmental impacts. It's not an imperative.

Steven Eppinger

Professor of Management Science and Innovation, MIT Sloan School of Management

Talent Shortage and Skills Gap

The skills gap is a major hurdle for adopting AI in sustainable product development. Domain experts often lack data-science skills or environmental knowledge.

Lack of Standardized Metrics

Many companies lack quantifiable measures to track progress toward sustainability goals.

Sustainability is the Only Future Strategy

For enterprises today, the ultimate goal should be to build products that are better for the environment without sacrificing quality or performance. Embracing AI for sustainability can accelerate timelines and lower costs—leading to more satisfied end users. Companies that can quickly adopt AI will drive innovation that benefits both the bottom line and this planet.

You can use AI to take multiple concepts and link them with simulation tools, a material database, and a carbon calculator to tell you which design iteration is the best and what modifications you might want to make

Narasimham RV,
President of Engineering Services,
Tech Mahindra

Engineering Tomorrow with Sustainable Solutions

At Tech Mahindra, our engineering services enable companies to navigate this transformation effectively. Leveraging product and platform engineering principles, we harness AI for sustainable product development and drive physical experiences for a safe and cognitive future.