CAE stands for Computer-Aided Engineering. Important PointsA CAE engineer uses CAE tools and Computer-Aided Design (CAD) software, for the simulation, validation, and optimization of products and manufacturing tools. This can occur at the design stage to aid with decision-making as well as for later product or process optimization. Computer-aided engineering (CAE) is the practice of applying computer-assisted math-based analysis and simulation techniques to the product development process. Hence, CAE is the abbreviation for computer-aided engineering, which is the analysis of the designed visualization.