The rapid advancement of artificial intelligence (AI) has created new avenues for enhancing the design and innovation phases of product development. This dissertation aims to provide a comprehensive and analytic examination of the usage of AI tools to assist different aspects of the product development process. The objective is investigating the way in which AI technologies can improve the productivity, effectiveness, and competition of product development teams, while addressing the risks and challenges related to their deployment. The process of product development and its phases are introduced in the very first chapter, which covers planning, concept development and system-level design along with detailed design, testing and refinement and production ramp-up.