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A new report by the Capgemini Research Institute reveals that Physical AI has emerged as a critical enabler for global reindustrialization and supply chain resilience. According to the study, titled ‘Physical AI: Taking human-robot collaboration to the next level,’ two-thirds of organizations now rank Physical AI as a high priority for the next three to five years. Driven by severe labor shortages and the push for domestic production, 43% of executives view this technology as the key to making reshoring efforts in the US and Europe economically viable at scale.

The shift marks a transition from static automation to autonomous action. Pascal Brier, Chief Innovation Officer at Capgemini, explains that the convergence of foundation models, edge computing, and 5G has created a "data flywheel" effect, allowing robots to learn from real-world environments continuously. While humanoid robots remain a longer-term bet due to technical immaturity and high costs, the near-term surge is led by Autonomous Mobile Robots (AMRs) and Cobots. With nearly 80% of organizations already engaging with the technology, Physical AI is set to redefine productivity in hazardous operations, micro-logistics, and dynamic manufacturing.