Purpose—In the digital transformation era, this research explores how artificial intelligence (AI) can be integrated into design engineering. It also aims to discover how AI affects functionality, creativity, and aesthetics in design. Methodology—The paper uses various literature reviews to address various aspects of the subject matter. It seeks to discover how Artificial Intelligence has holistically changed the engineering design process through a multimethod approach and the potential for creative stimulation. This study investigates whether digital transformation, such as AI, can develop design engineering outcomes. Findings—This research reveals that AI algorithms using large amounts of data can effectively create design solutions to meet the needs and preferences of different disciplines. Additionally, digital transformation makes it possible to test non-traditional textures in design, promoting innovative design outcomes. Nevertheless, as AI technology rapidly changes, there is a need for further study and adaptability. Originality/Value—This paper adds to the current literature on the influence of AI in design engineering. It shows how AI can improve design processes, resulting in practical and attractive innovations. Professionals can take advantage of the results obtained from this research when developing creative designs in the digital transformation era. Moreover, this investigation points out that constant research and ethics inquiry will resolve the issues caused by the transformed phase of industrialization using artificial intelligence in designing the engineering process.