Is the future of AI physical?

Could the future of AI be physical? On Ian Explains, Ian Bremmer breaks down the rapid pace of AI advancement—from generative tools like ChatGPT to agentic AI that performs autonomous tasks like a digital employee. Physical AI is where algorithms meet hardware, like robots and drones. Machines that don’t just process information but sense, move and manipulate the world around us. Big tech companies are pouring billions into robotics research, convinced that in order to truly change our world, AI needs to become a part of it.

Whoever dominates, the payoff will be huge. Autonomous machines will transform industries like transportation, healthcare, and logistics. They can offset labor shortages in aging societies like Germany, Japan, and South Korea. Morgan Stanley estimates humanoid robots could be a $5 trillion industry by 2050. But at least right now, physical AI is still awkward. Robots stumble and all down. Programming dexterity and intuition is a lot more challenging than text prediction. But given how fast the field is accelerating, soon, the challenge won’t be whether AI becomes part of our world but how we choose to live with it.