Robots are coming! Brace yourself...

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Morning friend, hope you had a great weekend! ☕️ 

Recently, we chatted about agentic AI: 2025 - The year of AI Agents.

Agents can sense, think and act.

They can get things done for you in the digital world.

But what about the physical world? Well, Physical AI is here.

What is Physical AI, and how does it change things?

What do the next 10 years look like for us?

Grab your coffee and let’s dive in ☕️ 

The Emergence of Physical AI

Physical AI, is the integration of artificial intelligence with physical systems, enabling machines to perceive, understand, and interact with their environments.

It combines sensors, actuators, and AI algorithms to create autonomous systems that can adapt and learn from real-world experiences.

At CES2025, Jensen Huang spoke about Physical AI as the next major development in AI after Agents, and something that will transform Robotics development.

 A "ChatGPT moment" for robotics is imminent, he says.

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What Makes Physical AI Special?

Generative Physical AI takes traditional AI models (originally trained only on text or images) and teaches them about the real world by letting them learn from 3D simulations.

1. Three-Dimensional Understanding
   Robots equipped with advanced sensors and AI algorithms can interpret their physical environment. They’re not just scanning for obstacles—they’re learning, anticipating, and making decisions on the fly.

2. Generative World Foundation Models (WFMs)
   Thanks to WFMs, robots don’t have to wait for humans to program every response. They can simulate various real-world scenarios—like navigating a crowded store aisle—predict outcomes, and then refine their actions based on what they learn.

3. Wide-Ranging Applications
   Physical AI has the potential to transform how entire industries operate, from assembling electric vehicles on factory floors to harvesting crops with precision. And that’s only the beginning.

Using the concept of a “digital twin”, a virtual space is created, where robots and sensors operate under realistic physical rules, like gravity or how objects collide.

This enables the robot to gain a real-world sense of spatial relationships and physical behavior using simulated data.

It saves massive amounts of time in training.

Watch Jensen Huang explain here:

The Next 10 Years

The next decade promises significant advancements that will reshape the workforce and society.

Optimistically speaking, the top three economic benefits of AI expected by 2030 are:

1. Significant GDP Growth: AI is projected to contribute approximately $15.7 trillion to the global economy, boosting global GDP by up to 14%. This growth will come from increased productivity and the creation of new markets and revenue streams as AI technologies are adopted across various sectors.

2. Enhanced Labor Productivity: AI is anticipated to increase labor productivity by as much as 40%, allowing businesses to operate more efficiently. This boost in productivity will primarily come from automating routine tasks and optimizing workforce management.

3. Creation of New Job Opportunities: While AI may displace some jobs, it is also expected to create new roles in AI development, management, and oversight. The demand for skilled workers who can work alongside AI technologies will rise, leading to a transformation in the job market.

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What can we do to thrive in this new world?

Now that we know what’s coming, we can be proactive in preparing so we can ride the wave:

1. Strengthen People Skills
As AI takes over routine tasks, managers who show empathy, clear communication, and conflict resolution skills will stand out. Focus on building teamwork, creative thinking, and emotional intelligence to keep your team inspired. Subscribe to soft skills newsletters like www.scarymanagement.com 😁 

2. Encourage Cooperation Between Humans and Machines
Build a hybrid team. Instead of seeing AI as a threat, look for ways it can help your team. Figure out which tasks can be automated with agents/robots and which need a personal touch. Show employees how AI supports their work, rather than replaces it.

3. Use AI Responsibly
When you adopt AI tools, make sure you’re transparent about data privacy, fairness, and other ethical concerns. By doing so, you build trust with both your team and your customers, setting a strong foundation for long-term success.

Conclusion

Robots are coming!

They will reshape how we work and live.

Yet our human strengths like empathy, creativity, and good judgment are now more important than ever.

We need to us this new technology responsibly, focus on teamwork between people & machines, and hone our soft skills.

In doing so, we can ensure AI enhances our abilities and we can thrive in this new world.

Thanks for joining me today, friend.

Till next week! ☕️ 

Vaugan