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The McKinsey Podcast · 2026-10-01 · 19 min · 3,010 words

The hidden value of physical AI

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Yeah, if I each for the cup. And discover it is heavier than what I thought it needs to be. I change my grip. If someone walks into my path, I change direction. I anticipate how the world around me will respond to my actions and I prepare for it. And if we start imbuing these capabilities into what a machine can do, it can start manipulating irregular objects. That's McKinsey partner Annie Kelkar. He's talking about the growing sophistication of physical AI. Anni joins me and McKinsey senior partner Mark Patel to discuss the ways advances in physical AI are generating new value and reshaping the future of work.

This is the McKinse Podcast, where we help you make sense out of the world's toughest business challenges. I'm your host for today, Lucia Rahili. Let's start with some context. What exactly do we mean when we talk about physical AI and why is it generating so much buzz? We're obviously living in a moment where

generative AI is transforming many aspects of how we experience the digital world. When we talk about physical AI. We're moving from digital outputs. Text code images. to the physical.

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