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Every AI system in wide commercial deployment has operated on the same side of a single boundary: data comes in, output goes out, and the system's reach ends there. Physical AI is built to cross that line.
The category, referring to AI designed to interact with and act within the real world, is drawing high expectations from Wall Street and Silicon Valley while unions and economists are raising warnings about its effects on jobs and wages.
The action surface The constraint that makes physical AI a distinct engineering category is the shift from generating output to taking physical action.
Software-based AI perceives and classifies data; physical AI is built to perceive and operate in actual environments.
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