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In a digital world increasingly driven by artificial intelligence, the question arises: How can organizations maintain human-centered innovations? In the latest thought-provoking episode of the Analytics Insight Podcast, host Priya Dialani speaks to Varun Nagaraj, Dean and Professor of Information Management and Analytics at S.P. Jain Institute of Management and Research (SPJIMR), to explore how design thinking is transforming in the age of AI. With a unique blend of academic insight and real-world experience, he discusses how design thinking—rooted in empathy and creativity - is evolving into a strategic advantage for businesses navigating today’s technological disruptions.
S.P. Jain Institute of Management and Research (SPJIMR) stands apart not merely as a business school but as an institution focused on cultivating socially sensitive leaders. Mr. Nagaraj emphasized that SPJIMR has long prioritized inclusive innovation over profit-driven models. “Our mission is to develop ‘wise innovation’—solutions that combine technological excellence with social responsibility,” he noted.
This ethos is embedded in the institution’s curriculum and teaching methodologies, which balance emerging tech trends with foundational human values. For SPJIMR, design thinking isn’t just a process—it’s a principle that guides innovation with a conscience.
Before transitioning into academia, Professor Nagaraj’s career spanned engineering, product management, and executive leadership roles in Silicon Valley. As a partner at PRTM and a leader in multiple startups, he was consistently focused on bringing innovative products to market. His decision to join SPJIMR was inspired by a desire to amplify impact, shaping future leaders capable of fusing technological insight with human empathy.
Bringing his industry experience into the classroom, Professor Nagaraj now guides students in understanding the larger implications of innovation, not just what it can do, but what it should do.
Design thinking, often seen as a modern business trend, actually has deep historical roots. Originating in the 1960s through the study of architects and designers, it focused on transforming abstract ideas into tangible, elegant solutions. In the 1980s and 90s, design firm IDEO adapted these creative principles into business-friendly frameworks.
According to Mr. Nagaraj, the methodology rests on four critical pillars:
Empathy-Led Insights: Understanding user needs through immersive, ethnographic research.
Divergent Ideation: Exploring a wide range of possibilities before narrowing down solutions.
Rapid Prototyping: Testing ideas quickly to learn what works and what doesn’t.
Iterative Refinement: Continuously improving solutions based on user feedback.
While some firms implement this as a rigid process, professor Nagaraj argues that design thinking works best when its principles are integrated fluidly into broader innovation strategies.
The intersection of AI and design thinking has opened powerful new possibilities. Traditionally, gaining customer insights required physical observation and lengthy data collection. Now, AI tools—particularly generative AI—can simulate user behavior, model accessibility barriers, and provide rich market data in real-time.
However, Mr. Nagaraj warns against over-reliance on digital tools. “Students still need to walk through fish markets or crowded buses to grasp user experiences fully,” he explained. In his view, AI should augment, not replace, human observation.
Artificial intelligence is also revolutionizing how designers generate ideas. AI can act as a 24/7 brainstorming partner, offering hundreds of variations on a theme in moments. Whether it’s redesigning beach chairs for the elderly or rethinking transportation for the visually impaired, AI tools unlock a vast creative landscape that might remain unexplored through traditional methods alone.
Mr. Nagaraj views this not as outsourcing creativity but as expanding it. “AI helps us think broader and faster,” he noted. “But the spark of innovation still begins with human curiosity.”
Where prototyping once took days or weeks, AI now enables near-instant creation of mockups, mobile interfaces, and physical models. Iteration cycles are faster and more affordable, empowering designers to test and refine their ideas with unprecedented speed.
AI-generated “customer bots” can even simulate user interactions, providing immediate feedback that traditionally required scheduling and facilitation. These advancements streamline the design process, allowing teams to focus more on refining ideas than building basic models.
One of the most surprising insights Mr. Nagaraj shared was the nuanced role of empathy in innovation. Citing recent research, he explained the distinction between cognitive and affective empathy. While cognitive empathy, understanding another’s perspective- is linked to successful innovation, affective empathy, feeling others’ emotions- can sometimes cloud objective decision-making.
This counterintuitive finding challenges the prevailing narrative that more empathy is always better. “Great designers need emotional sensitivity, but also analytical clarity,” he asserted.
As AI continues to reshape the innovation landscape, Mr. Nagaraj envisions a future where design thinking and artificial intelligence co-evolve. Educational institutions, he argued, must now teach students not just how to design, but how to think critically about when and how to use AI.
“AI isn’t a replacement for human creativity,” he concluded. “It’s a partner. The key lies in combining machine efficiency with human empathy to solve real-world problems that matter.”
The conversation between Priya Dialani and Varun Nagaraj illuminated a powerful message: meaningful innovation doesn’t come from chasing technology for its own sake. It comes from centering people in the design process, supported, not supplanted, by intelligent tools.
As organizations adopt AI to accelerate ideation and execution, the heart of innovation must remain human. With thought leaders like Mr. Nagaraj shaping the future of design thinking, the industry is poised not just for smarter solutions but for wiser ones.
