As artificial intelligence transitions from screen-based applications to embodied physical forms, industrial design faces a critical paradigm shift. This research addresses how designers must adapt to create for AI-enabled products with agency—devices that sense, decide, and act. Triggered by advancements such as OpenAI’s collaboration with hardware designers and projections of artificial general intelligence by 2030, the paper explores new frameworks for engaging with embodied AI (EAI). It argues that legacy design principles must evolve to meet the demands of a future where products are not only smart but autonomous actors in human environments.