The rise of “physical AI” is accelerating as robots and autonomous machines begin to transition from digital systems into the real world. Technology companies are investing heavily in this next wave of AI, which aims to create machines that understand physics, perceive their surroundings, and operate safely alongside humans. Analysts such as Morgan Stanley even predict that more than a billion humanoid robots could exist globally by 2050.
In Tokyo, startup Enactic is developing humanoid robotic arms capable of learning physical tasks through teleoperation. Using VR headsets, human operators guide the robots through actions such as washing dishes or handling laundry, generating the training data needed for autonomous performance. Enactic plans to deploy its next-generation robots in Japanese care homes starting next year, addressing labor shortages while ensuring safety through soft materials and controlled motion.
China is emerging as a major force in the humanoid robotics race. XPeng recently showcased a sleek, autonomous humanoid capable of walking and dancing, supported by China’s strong manufacturing ecosystem and government backing. XPeng believes robots could eventually outsell cars, though challenges remain—particularly around dexterity, durability, and cost. Other Chinese firms, including Unitree Robotics and EngineAI, are also quickly advancing.
Despite impressive demonstrations, many robots still struggle with routine physical tasks. Teleoperated training remains the most reliable way to teach physical AI models because these systems must learn visual perception, spatial reasoning, and object interaction simultaneously. Companies like Enactic and US–Norwegian startup 1X are using real-world deployments to collect this training data, though current performance can still be inconsistent.
Experts note a persistent gap between the sophistication of AI models and the physical capabilities of robots, exemplified by incidents such as Russia’s first humanoid robot falling on stage. Robotic bodies must evolve significantly to match the adaptability seen in nature. Even so, investment is surging, with major deals like SoftBank’s $5.4 billion acquisition of ABB Robotics.
While concerns about job displacement and privacy continue, researchers suggest humans retain irreplaceable advantages, especially in tactile sensitivity and adaptability, meaning physical AI is likely to augment, not replace, human labor.