This study explores how Industrial Design (ID) programs can responsibly and effectively adopt Artificial Intelligence (AI) while honoring established workflows and traditions. Through qualitative research involving ID faculty, industry professionals, and over 70 students, the project identifies key challenges, opportunities, and perceptions around AI in design education. It proposes a pedagogical model emphasizing a progressive learning trajectory, critical thinking, and ethical reflection. The study advocates for an AI-collaborative mindset that enhances, not replaces, core design values. It offers a roadmap for integrating AI meaningfully into ID curricula and preparing students for future design practice.