Physical AI

Physical AI refers to artificial intelligence systems that can perceive their surroundings, understand context and act in the real world, including robots, autonomous vehicles, smart factories and urban infrastructure. Japan and South Korea have recently stepped up investment in domestic platforms and computing centers, while companies including NVIDIA, Toyota and LG are accelerating standard-setting and commercial deployment. Capital markets are also targeting the sector through related funds and acquisitions. Its development has implications for semiconductor, sensor, edge-computing and manufacturing supply chains, making technology integration, policy investment and real-world deployment important to watch.