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During Nvidia’s fourth-quarter earnings call earlier this year, CEO Jensen Huang exclaimed, “The next frontier of AI is physical AI.”

Huang was referring to a relatively new field that combines artificial intelligence with everything from humanoid robots and industrial machines to cars and even internet of things (IoT) devices. Data from those physical systems is actively fed into the AI’s brain — a large language model — after which the technology can make decisions in real time.

The AI-infused combination differs from traditional robotics because it uses a bidirectional learning system instead of fixed rules, making it more adaptable and capable in complex, unpredictable situations, according to Albert Meige, an associate director with global consultancy Arthur D. Little.

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