Physical AI, which integrates artificial intelligence into robots and machinery that interact with the physical world, is emerging as a critical competitive edge in manufacturing. This technology enables systems to perform complex, adaptive tasks like assembly, quality inspection, and material handling with greater precision and autonomy than traditional automation. By combining advanced sensors, machine learning, and real-time data processing, these AI-driven systems can learn from their environment, optimize processes on the fly, and reduce downtime. The shift is moving factories beyond rigid, pre-programmed machines toward flexible, intelligent production lines that can quickly adapt to new products and variations. This evolution promises significant gains in efficiency, cost reduction, and the ability to handle more customized manufacturing at scale. For the full analysis, read the article at: https://www.technologyreview.com/2026/03/13/1134184/why-physical-ai-is-becoming-manufacturings-next-advantage/