During the recent World Economic Forum held in Davos, technology executives and participants expressed a positive outlook on the evolving advancements in artificial intelligence.
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</div>Leading technology figures and economic experts at the recent World Economic Forum (WEF) in Davos acknowledged the significant impact of AI in reshaping the global job market and altering national economic structures.
However, discussions concerning physical AI and robotics adopted a more optimistic tone, as participants suggested that robots equipped with advanced intelligence and sensors are poised to enhance human efficiency and manufacturing capabilities.
This development is anticipated to boost economies and, over time, lead to the generation of additional employment opportunities.
Physical AI describes the manifestation of artificial intelligence in tangible forms, primarily robots, although some predict wider practical applications like AI-powered cameras for crime reduction or AI-enhanced sensors for increased industrial productivity.
Jensen Huang, CEO of Nvidia, stated during a WEF fireside chat that ‘It is now possible to integrate industrial and manufacturing capacities with artificial intelligence, thereby entering the realm of physical AI or robotics.’
He suggested that AI, encompassing agentic AI and robotic automation, will probably transform human roles rather than eliminate jobs. According to Huang, robots can handle routine administrative tasks, freeing humans for more productive work. He added, ‘We have a shortage of five million nurses…. AI is boosting their output…. [And as] hospitals perform better, they employ more nurses.’
Tech entrepreneur Elon Musk noted that robots can operate continuously without fatigue, leading to efficiency improvements that will elevate the overall economic output. The Tesla CEO remarked during a WEF discussion, ‘My forecast is…we will produce such a multitude of robots and AI that they will fulfill all human requirements.’
Musk elaborated on how robots could assist in elderly care, a costly responsibility for humans, suggesting that these machines could effectively substitute for younger caregivers.
During a WEF panel session, Daniela Rus, director of MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), pointed out that robots are also adept at performing tasks hazardous to humans, albeit with ongoing human oversight. (Numerous companies, including Venti Technologies, where Rus serves as a board member and advisor, originated from CSAIL.)
Rus mentioned that Venti operates ‘complete fleets of robots that function round-the-clock without requiring human operators.’ She added, ‘Nevertheless, human drivers remain involved to intervene during adverse weather conditions or periods of high operational demand.’
China is seen as more advanced in robot deployment compared to the US, where the robotics sector continues to expand. Tianlan Shao, CEO of China-based Mech-Mind Robotics, noted that his firm dispatched over 10,000 robots last year, matching its total production from the preceding eight years.
Shao contended that should an industrial robot, for instance, be equipped with a chainsaw, human intervention might still be necessary to ensure it adheres to its assigned duty. Shao stated, ‘We require explicit boundaries…, definitions, and regulations.’
Shao highlighted advancements over the past year in integrating AI into robotic systems. He explained, ‘We can now train this so-called world-model-like entity, synchronizing all aspects, including robot vision and movement, within a unified spatial framework.’
World models being developed by companies such as Nvidia, Microsoft, and Google aim to enhance robots’ physical capabilities. Scientists at Mohamed bin Zayed University of Artificial Intelligence have developed PAN, a world model that evaluates action sequences within a secure, regulated simulated environment.
The increasing significance of physical AI extends beyond the WEF’s discussions. Deloitte’s ‘State of AI in the Enterprise’ report, published in January, highlighted a broadening embrace of physical AI. Approximately 58% of surveyed companies reported adopting physical AI, with projections indicating an increase to 80% within the next two years.
The consulting firm views physical AI as possessing a tangible real-world aspect, referring to technology capable of perceiving and initiating physical results. Surveillance and security systems, for example, represent rapidly expanding deployment sectors, alongside collaborative robotics.
Beena Ammanath, global head at Deloitte AI Institute, informed Computerworld that ‘While ‘physical AI’ is a relatively recent term, its foundational elements were established over a decade ago; the current distinction lies in integrating intelligence and autonomy atop that existing physical base.’
Ammanath clarified that the earlier foundational elements of physical AI encompassed IoT and robotic process automation.
While positive remarks were made about physical AI, not all WEF participants held entirely optimistic views regarding robotics. Rus interjected with a note of caution, stating, ‘Elon Musk also predicted in 2017 that we would be falling asleep at the wheel by 2019. And we are still not falling asleep at the wheel.’
Rus indicated that the proliferation of humanoid robots would be a gradual process, owing to challenges in navigation, material science, dexterity, and cognitive reasoning. He concluded, ‘It’s on its way, but it’s not here yet.’
The WEF’s Chief Economists Outlook observed the increasing valuation of firms specializing in humanoid robots—mechanical devices that resemble and operate like humans, a common feature in science fiction.
The WEF’s 2026 outlook stated, ‘Although still distant from widespread application in manufacturing plants, humanoid robotics companies are drawing substantial valuations and capital infusions.’
