Find out how global automakers are betting on physical AI…
For many of us, our first experiences of advanced artificial intelligence in operation were through large language models like OpenAI’s ChatGPT or Google’s Gemini.
These models offered new ways to generate information, videos, and images. Now, in 2026, as we begin to integrate AI into the workplace and as AI begins to sculpt algorithms and command the apps we use, developers have set their sights on a new landscape with which to drive smart innovation. The new battleground emerging is grounded not in the world of knowledge and words, but in physical space — cue the physical AI revolution.
As corporations begin to embed AI into the ways they process data, make sales, and draft communications, many companies are also looking for ways to automate and implement AI in manufacturing processes, on factory floors, and to perform difficult or dangerous tasks that humans may not want or cannot do.
Automotive manufacturers are among the companies leading the charge in the physical AI space. From Tesla to BMW, Toyota to Mercedes-Benz, automakers are developing humanoid or intelligent robots set to perform a number of duties — from repetitive assembly-line tasks in the case of Mercedes-Benz to allegedly being able to “eliminate poverty” in the case of Tesla’s Optimus humanoid robot.
Hyundai Motor Group and fire-fighting robots
Among the automakers betting on physical AI solutions is South Korean multinational Hyundai Motor Group, which is developing intelligent robots to act as front-line firefighters for the Korea National Fire Agency.
These robots are designed to operate in initial fire suppression and search missions that may be inaccessible to human firefighters. They are equipped with a water cannon, vision-enhancing cameras, and remote-control operation.
Executive Chair Euisun Chung of Hyundai said:
“Hyundai Motor Group will continue to provide the technologies and support needed to ensure that firefighters can carry out their missions in a safer environment.”
The initiative responds to the 1,802 firefighter casualties recorded over the past decade.
Chung said the robots represent “technology that saves lives,” adding that they are designed to act as “reliable teammates,” entering dangerous scenes first.
Acting Commissioner Seung-ryong Kim described this as a breakthrough in disaster response. He said:
“This initiative marks the first step in a paradigm shift that will redefine disaster response. We will continue to actively introduce advanced technology to the field through innovative collaboration with the private sector, including Hyundai Motor Group, a global mobility leader.”
Hyundai will also support the upcoming National Fire Hospital with vehicles and rehabilitation equipment.
The group’s mission represents the first step in demonstrating how physical AI, if used correctly, could work in a hybrid network with human workers to carry out tasks that are particularly dangerous or undesirable for human beings.
BMW and robots on the factory floor
Legacy OEM BMW is also betting on humanoid robots, this time to maximise efficiency on factory floors. The automaker will implement humanoid robots in its German plants as a means of boosting efficiency and bringing down manufacturing costs in the context of Europe’s beleaguered auto industry.
BMW began a trial in the US last year at a factory in South Carolina and has since introduced robots into its Leipzig plant.
In Leipzig, a small number of humanoid robots, developed by Swedish firm Hexagon, will assist with the manufacturing of high-voltage batteries — a task that is particularly dangerous for human workers.
In South Carolina, during a humanoid pilot, robots were used to place sheet metal parts for welding in vehicles, a task that BMW described as:
“Particularly demanding in terms of speed and accuracy while also being physically exhausting for employees.”
BMW is not alone in its pursuit of efficiency-boosting robotics — automakers including Tesla, Toyota, and Mercedes-Benz have all announced they will integrate robots into the manufacturing process in the coming years.
Toyota has unveiled plans to introduce humanoids at a plant in Canada, while Hyundai is testing robots designed in conjunction with Boston Dynamics to be used in its production plant by 2028.
For Elon Musk, humanoid robots have an even more ambitious use case. Tesla’s aggressive expansion is predicated on the sale of millions of humanoid robots, named Optimus, which the divisive billionaire has alleged could “eliminate poverty.”
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