Physical AI: What It Is and What It Is Not

Physical AI is defined as artificial intelligence that closes the loop between perception and action within the real physical world. Unlike AI confined to digital screens, its output is a tangible movement, such as a robot arm or a self-driving car interacting with its environment. This concept is distinct from related terms like world models, which only predict outcomes without acting, and embodied AI, which focuses on how a physical body shapes intelligence. It also differs from Physics AI, which incorporates physical laws into models, and digital twins, which are virtual representations, as Physical AI's core function is to take action in the world.