This perspective addresses the topic of harnessing the tools of Artificial Intelligence (AI) for boosting innovation in functional materials design and engineering as well as discovering new materials for targeted applications in biomedicine, composites, nanoelectronics or quantum technologies. It gives a current view of experts in the field, insisting on challenges and opportunities provided by the development of large materials databases, novel schemes for implementing AI into materials production and characterization as well as progress in the quest of simulating physical and chemical properties of realistic atomic models reaching the trillion atoms scale and with near ab initio accuracy.