"The fusion of digital intelligence with physical systems will redefine how industries think, move, and create." - Andrew Ng, Co-founder of Coursera and DeepLearning.AI
The rise of physical AI
The next great leap for artificial intelligence in manufacturing lies in “physical AI,” a stage where intelligent systems interact directly with the physical world. Unlike traditional automation, physical AI integrates algorithms with sensors, robots, and actuators to make real-time decisions on the factory floor.
Beyond automation
Many large manufacturers have already maximized automation’s benefits. The next efficiency boost will come from machines that can perceive, learn, and act autonomously, enabling smarter production lines, adaptive supply chains, and predictive maintenance. This is AI meeting the real world. And companies like TCS are major players here.
From concept to large-scale application
While AI can already optimize operations up to 85–90% efficiency, the true value emerges when AI manifests at scale, specially in warehouses and logistics networks. Physical AI will transform manufacturing and logistics, impacting everything from energy grids to automobiles. But it is not easy to implement, due to many limitations faced in AI modelling for the real world.
Software-defined manufacturing
Product engineering is evolving into a software-defined domain where testing, validation, and lifecycle management are AI-driven. As more traditional equipment becomes intelligent, companies will shift from rigid production systems to agile, data-rich ecosystems.
Powering India’s digital manufacturing push
India’s engineering and R&D sector, expected to reach $100 billion by 2030, is embracing AI-based transformation across utilities, energy, and life sciences. The convergence of IoT, automation, and AI is creating smarter, self-learning industrial networks.

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