Physical AI has an incredible future, not only as technology and an investment opportunity, but also as a means of improving our lives. To help myself and you better understand what "Physical AI" is, i asked Grok the three following questions and below are the answers:
- What is Physical AI?
- What are examples?
- Who are the leaders.
1. What is Physical AI? Physical AI, also known as embodied AI, refers to artificial intelligence systems that integrate with physical hardware to perceive, reason about, and interact with the real world in real time. Unlike traditional AI, which operates primarily in digital environments, physical AI combines AI models with sensors, actuators, and control systems to enable machines—such as robots—to sense their surroundings, make decisions based on physical dynamics like space, motion, and interactions, and perform actions autonomously. This represents a shift from generative AI (focused on creating content) to systems that "embody" intelligence in machines, allowing them to adapt to complex, unpredictable environments. Popularized by NVIDIA CEO Jensen Huang, physical AI is seen as the next major wave of AI innovation, with 2026 marking an inflection point for broader adoption in daily life and industries. Currently, about 58% of industry leaders report using physical AI to some extent, with projections reaching 80% adoption within two years, particularly in Asia-Pacific markets.
2. What are Examples of Physical AI?
Physical AI is already transforming sectors like manufacturing, logistics, healthcare, and transportation. Key examples include:
- **Humanoid robots**: These perform complex tasks like folding laundry, assembling boxes, or preparing coffee in real time, adapting to dynamic environments without predefined programming. Boston Dynamics' Atlas robot, for instance, navigates human spaces and handles physical interactions.
- **Industrial automation robots**: Used in factories for welding, assembly, or quality control, these systems learn from experiences and handle variable tasks, addressing labor shortages and improving efficiency. Collaborative robots (cobots) work alongside humans in workcells.
- **Autonomous vehicles and mobility**: Self-driving cars, robotaxis, drones, and autonomous forklifts use sensors and AI to detect surroundings, make decisions, and operate safely.
- **Service and healthcare robots**: Robots in hospitals for tasks like patient assistance or charging electric vehicles, or in food services for preparation and delivery.
- **Agentic AI systems**: Modular platforms for logistics or personal assistance that act autonomously, handling extended tasks like 20-hour engineering workflows.
These applications are expanding beyond factories into offices, homes, and public spaces, with real-world rollouts accelerating in 2026.
3. Who are the Leaders?
Several companies and organizations are at the forefront, driving innovation through hardware, software, and ecosystem development. Key leaders include:
- **NVIDIA**: A pioneer in popularizing physical AI, providing foundational models like GR00T for humanoid robots and platforms like Cosmos for world modeling. They're collaborating on industrial AI with partners like Dassault Systèmes and powering systems for companies like Figure AI and 1X.
- **Boston Dynamics (Hyundai Motor Group)**: Leading in humanoid robotics with the Atlas robot, focusing on real-world mobility and tasks. They're expanding into charging robots and modular platforms like MobED.
- **Physical Intelligence**: A rising unicorn (valued at $5.6B after a $600M raise in late 2025) building AI software stacks for robots to learn complex tasks like coffee preparation and laundry from demonstrations.
- **Universal Robots**: Specializing in collaborative robots with AI-driven features like vision-guided welding; they're emphasizing predictive math and ecosystem innovation for physical AI.
- **SoftBank and Yaskawa Electric**: Jointly developing physical AI robots for offices, hospitals, and schools, focusing on integration and deployment.
- **Other notable players**: Qualcomm for sensor-based real-time AI, Arm for efficient computing in physical systems, Path Robotics for autonomous welding, and emerging firms like Figure AI and 1X using NVIDIA tech for humanoids. Organizations like the World Economic Forum are also highlighting its industrial impact.
* READ MORE about DINO the weeding robot.
