The Invasion of 'Physical AI' in Your Vehicle

It may sound paradoxical.

Yet to the minds behind technology marketing, it's the newest buzzword designed to usher in an exciting future of innovation.

In reality, the phrase helps us grasp how car manufacturers are presently viewing themselves: as pioneers of technology. Additionally, it's a quick way to see why the car sector holds great allure for chip-making companies—forecasted to reach a $123 billion opportunity by 2032, an 85 percent increase from 2023. The recent major consumer tech fair in Las Vegas is infamous for its whimsical robot displays. However, this year's exhibitions underline how the worlds of robotics, automobiles, and semiconductor tech are increasingly converging.

Defining 'Physical AI'

In marketing terms: 'Physical AI' is envisioned as autonomous systems engaging with the real world, utilizing cameras and sensors to fully decipher and react to their surroundings. This involves completing intricate tasks. The concept of Physical AI covers humanoid robots laboring within Hyundai's factories, enabled by collaborations with Google DeepMind, Boston Dynamics, and the Korean car producer. It's exemplified by self-driving vehicles managing complex traffic or performing difficult transitions when needed—handing over control effortlessly between a driver and an automated system. Physical AI empowers robots, cameras, and autonomous vehicles to interpret, process, and execute complex real-world operations.

The Role and Influence of Chipmakers

Perhaps unsurprisingly, chip-producing giants are seizing the spotlight concerning physical AI. They are unveiling new open-source AI models aimed at autonomous systems, capitalizing significantly on this trend.

Consider the series of autonomy-focused announcements at the CES event, each demanding substantial onboard computing capabilities.

Automotive Industry's Integration with AI

Ford aims to launch a technology by 2028 that lets drivers control vehicles through advanced systems. The Afeela, an electric cooperation between Sony and Honda, intends to achieve self-navigation in the future. Nvidia collaborates on handling Geely's 'intelligent driving system,' geared toward transitioning to advanced autonomous driving capabilities. Mercedes-Benz is also deploying a hands-free driving system, with Nvidia anticipating capability expansion to facilitate home-to-work commutes without manual intervention. Nvidia's CEO, Jensen Huang, highlighted the burgeoning market of self-driving cars during a CES session: 'This is a significant endeavor for us.'

Mark Wakefield, the global automotive market leader at AlixPartners, encapsulates the essence: 'The vehicles' central processing units will become dramatically bigger—potentially hundreds of times larger—and chipmakers are ready to supply this demand.'

Thus, it's no wonder these marketers discovered a compelling new descriptor.