Physical AI is emerging as the next major frontier in technology by applying AI tools to create tangible objects and scale robotics [1, 2, 3].

This shift represents a transition from experimental prototypes to production-grade platforms. By translating imagination into physical reality, the movement aims to move robotics out of controlled lab environments and into commercial scalability [1, 2, 3].

Industry leaders including Alexander Reben, co-founder of Phyzify, and Brian Hartzband, president of U.S. operations at GMEX Robotics, are driving this transition [1, 2]. The goal is to utilize AI to optimize the creation of physical objects, a process that allows companies to move beyond digital interfaces and into the physical world [1, 2].

Investment activity reflects this trend across several global markets. In South Korea, NAVER D2SF recently completed its third investment [4] in NdotLight, a startup specializing in physical-AI data [4]. This follows a broader trend where companies have spent two years [5] attempting to integrate AI into their core business processes [5].

While previous AI developments focused largely on generative text and imagery, physical AI focuses on the interaction between software and matter. This evolution allows for the creation of robotics that can be produced at scale rather than remaining as singular, high-cost experiments [2, 3].

Companies are now leveraging these tools to create a more optimizable business model. The integration of these technologies allows for a tighter loop between design and production, reducing the time it takes to bring a physical product to market [1, 3].

Physical AI is emerging as the next major frontier in technology by applying AI tools to create tangible objects.

The transition toward physical AI signifies a pivot from 'digital-first' AI to 'world-first' AI. While the first wave of AI focused on processing information, this phase focuses on manipulating the physical environment. For the global economy, this could mean a drastic reduction in manufacturing costs and a surge in autonomous hardware, moving robotics from niche industrial use cases to widespread commercial deployment.