Capgemini 2026 Report: 67% of Executives Rank Physical AI as Game-Changing
A new report from the Capgemini Research Institute reveals that the next decade will be defined by 'Physical AI' - systems that take intelligence beyond the screen and into the real world. The report, which surveyed 1,678 senior executives across 15 industries, suggests that with over two-thirds (67%) of executives describing the technology as game-changing for their industry, physical AI is no longer viewed as a futuristic experiment, but as a critical driver of future competitiveness.
The report highlights the convergence of multimodal foundation models and high-fidelity simulation as key differentiators. Traditional robotics relied on deterministic, 'hard-coded' instructions that often failed in unstructured environments. Physical AI utilizes vision-language-action (VLA) models that allow machines to perceive, reason, and adapt to unfamiliar situations without task-specific reprogramming.
The economic stakes are massive. Deepu Talla, VP and GM of Robotics at NVIDIA, noted that while digital AI is significant, physical AI targets sectors—including manufacturing, healthcare, and logistics—that collectively represent between $50 trillion and $80 trillion of global GDP.
Despite record venture capital investment—which hit $40.7 billion for the robotics sector in 2025—the 'long tail' of real-world edge cases continues to limit reliability. Scaling these systems will require more than just better algorithms.
Source: Capgemini Research Institute | Category: Research
