Abstract: In the last decades, AI has transformed perception and, in particular, computer vision, natural language processing, and speech recognition, creating a new wave of applications that have captured the public imagination. This talk argues that AI will now transform every engineering discipline, tackling fundamental societal issues in energy, health-care, and transportation, to name only a few. These applications will raise new challenges, including the need to integrate perception, machine learning, optimization, and human behavior. The talk will review what AI has accomplished, the challenges ahead, and some directions to address them. Applications in energy, mobility, and health-care will illustrate the concepts.