Physical AI, which integrates artificial intelligence into robots and machinery to interact with the physical world, is emerging as a critical competitive edge in manufacturing. Unlike traditional automation, these systems can perceive, learn, and adapt to complex, unstructured tasks in real-time. This allows for greater flexibility on production lines, improved quality control through advanced vision systems, and predictive maintenance that minimizes downtime. The technology is moving beyond controlled environments to handle variable materials and custom orders, enabling more agile and resilient manufacturing processes. As data from sensors and operations feeds AI models, systems continuously optimize for efficiency and new capabilities. This shift is seen as essential for modernizing factories and competing in markets demanding rapid customization and supply chain adaptability. Read the full article: https://www.technologyreview.com/2026/03/13/1134184/why-physical-ai-is-becoming-manufacturings-next-advantage/