The odds for success of a future CAI system (as well as the present CAI movement) are completely dependent on the quality of an underlying theory of innovation and the effectiveness of its tools, processes and models. This paper establishes a set of requirements for such a theory, evaluates existing approaches, methodologies and theories (including TRIZ), and presents an overview of the General Theory of Innovation (GTI) that, in the author’s opinion, satisfies most of the established criteria. The overview includes the theoretical foundation of GTI, a list of available applications, a list of future tasks, and other pertinent information.