AI is transforming the design workflow by compressing phases, blurring roles, and reshaping how teams collaborate. Organizations that act now to embed AI enable designers and researchers to focus more on opportunity identification and product strategy — work previously crowded out by delivery pressure. To realize these benefits, design, research, digital, and CX leaders must intentionally embed AI into how they work while preserving the core principles and phases of effective design. This report explains the key shifts underway, highlights nine high-impact AI use cases across design and research, and offers practical guidance for implementing them responsibly and effectively.