This article presents the NeoGuard project as an innovative case study in AI-enhanced engineering education, demonstrating how project-based learning can directly address global challenges by aligning with Sustainable Development Goals (SDGs) 3 (Good Health and Well-being), 9 (Industry, Innovation and Infrastructure), and 10 (Reduced Inequalities). Through an interdisciplinary, 10-week IoT implementation course, students developed a functional prototype of a low-cost, IoT-enabled neonatal incubator designed for resource-limited settings. The educational framework's core innovation was the multi-faceted integration of artificial intelligence: as a technical component (with Google Gemini AI providing real-time health analytics), as an educational tool for system optimization, and as a curriculum objective to foster AI literacy. The main results confirm the project's dual success: a technically viable incubator capable of continuous monitoring and automated intervention was built, and, more significantly, participant assessment data revealed a substantial improvement in students' technical competencies and AI readiness. This educational model offers a replicable framework for integrating AI and IoT competencies into engineering curricula through real-world projects that simultaneously advance technological innovation and contribute to sustainable development.
