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Physical AI to be real game changer for manufacturers'

Business Standard

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October 08, 2025

The real value of artificial intelligence (AI) in manufacturing will come only when physical AI scales to a more mature level, as efficiency gains have already been achieved due to automation, Sreenivasa Chakravarti, head of Internet of Things (IOT) and digital engineering at TCS, said.

- AVIK DAS

"Most of these large companies are extremely mature with automation. Automation has done wonders over the last two decades. So what is the delta that any kind of AI will provide on top of that? It will come with physical AI," he said during an interaction with Business Standard.

Physical AI is expected to be the next frontier which will change manufacturing enterprises. It equips machines with the ability to perceive, learn, and act in the real world by integrating AI algorithms with sensors and actuators in physical systems like robots and vehicles. The shift comes at a time when manufacturers are battling macro uncertainties, supply chain challenges, rising costs, and labour shortages. Nvidia believes that physical AI will revolutionise the $50 trillion manufacturing and logistics industries with everything from trucks to cars being robotic and embedded by AI.

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