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Artificial intelligence techniques offer one possible avenue toward new CAD tools to handle the complexities of VLSI. Redesign is a Prototype knowledge-based system that uses Al techniques to interactively aid in the functional redesign of digital circuits. Given a desired change in the function of a circuit, Redesign combines rule-based knowledge of design tactics with its ability to analyse signal propagation through circuits, in order to help the user focus on an appropriate portion of the circuit to redesign, suggest local redesign alternatives, and determine side effects of possible redesigns. Using lessons learned from work on Redesign, we are working on systems to aid in designing and debugging VLSI.