Capgemini warns CEOs: Physical AI can no longer be ignored

Capgemini warns CEOs: Physical AI can no longer be ignored

By Dr. Jonathan Reichental
Publication Date: 2026-05-10 00:12:00

Just as generative AI is transforming knowledge work, physical AI is poised to transform manual, operational and industrial work, and leaders who wait too long could find themselves lagging behind their faster-moving competitors.

Still, robotics has a long history of inflated expectations, which is why many executives are cautious about distinguishing breakthrough potential from hype.

Capgemini, the $26 billion Paris-based global technology consulting firm, has released a comprehensive report on physical AI and its findings support the conclusion that the business opportunity for physical AI could ultimately rival and potentially surpass digital AI in some sectors.

Unlike traditional AI, physical AI combines sensing, robotics, software and computation to enable machines to perceive, think and act autonomously in real-world environments. Business leaders are already taking…