Steel is an important engineering material used in a variety of applications due to its mechanical properties and durability. With increasing demand for higher performance, complex structures, and the need for cost reduction within manufacturing processes, there are numerous challenges with traditional steel design options and production methods with manufacturing cost being the most significant. In this research, this challenge is addressed by developing a micro-genetic algorithm to minimize the manufacturing cost while designing steel with the desired mechanical properties. The algorithm was integrated with machine learning models to predict the mechanical properties and microstructure for the generated alloys based on their chemical compositions and heat treatment conditions. Through this, it was demonstrated that new steel alloys with specific mechanical property targets could be generated at an optimal cost. The research’s contribution lies in the development of a different approach to optimize steel production that combines the advantages of machine learning and evolutionary algorithms while increasing the number of input parameters. Additionally, it uses a small dataset illustrating that it can be used in applications where data is lacking. This approach has significant implications for the steel industry as it provides a more efficient way to design and produce new steel alloys. It also contributes to the overall material science field by demonstrating its ability in a material’s design and optimization. Overall, the proposed framework highlights the potential of utilizing machine learning and evolutionary algorithms in material design and optimization. / Thesis / Master of Applied Science (MASc) / This research aims to develop an AI-based functional integrated with a heuristic algorithm that optimizes parameters to meet desired mechanical properties and cost for steels. The developed algorithm generates new alloys which meet desired mechanical property targets by considering alloy composition and heat treatment condition inputs. Used in combination with machine learning models for the mechanical property and microstructure prediction of new alloys, the algorithm successfully demonstrates its ability to meet specified targets while achieving cost savings. The approach presented has significant implications for the steel industry as it offers a quick method of optimizing steel production, which can reduce overall costs and improve efficiency. The integration of machine learning within the algorithm offers a different way of designing new steel alloys which has the potential to improve manufactured products by ultimately improving their performance and quality.