This paper explores the integration of artificial intelligence (AI) based capabilities into organizational systems with a specific focus on the ways in which increased proliferation of AI affects systems analysis and design (SA&D) pedagogy. Existing IS literature on the links between SA&D and AI capabilities appears to be very limited, and there are only few published papers on the role of AI in IS education in general. This paper explores the reasons why AI capabilities often must be integrated into organizational systems for the organization to gain full benefits from AI and provides an initial analysis of how the inclusion of AI capabilities affects various SA&D activities, including the identification of new types of analysis and design uncertainty caused by AI. The findings suggest that it is essential for the IS community to study the best organizational practices on AI integration into systems projects and use these findings to improve the ways in which we prepare IS students for advanced application of AI in organizational systems.