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The latest trend is ‘Physical AI,’ where hardware and software seamlessly converge to create smarter, more integrated systems.

This innovation is set to redefine the boundaries of technology.

Generative AI has quickly transitioned from a buzzword to a common topic in boardrooms. As executives were starting to grasp the concept, new terms have emerged, causing some to question whether it’s just marketing hype or if we’re struggling to keep up with AI advancements. Alternatively, this evolving language might simply reflect the rapid progress in technology.

Recently, a new term has emerged: physical AI. Researchers and major tech companies have begun integrating both software and hardware into a unified AI application.

Generative AI, the standout of the AI world, made a splash in November 2022 with OpenAI’s release of ChatGPT, showcasing its impressive ability to create content that resembles human work. While generative AI has captured much attention, its predecessor, applied AI, has been quietly transforming industries in the background.

Applied AI is geared toward solving practical, everyday problems rather than generating creative content. It enhances efficiency by automating tasks that are typically time-consuming and manual. Early examples of applied AI include Apple’s Siri, which can take notes and send reminders, and Google Maps, which offers real-time routes by analyzing millions of data points like traffic, weather, and road construction.

Recently, physical AI has gained more attention. Brett Adcock from Figure Labs unveiled Figure 02, a robot designed to replicate human gestures and fluid movements. Nvidia CEO Jensen Huang has emphasized that advanced robotics will drive the next AI revolution, predicting that the convergence of software and hardware will be the next major breakthrough in artificial intelligence.

This emerging field merges artificial intelligence with robotics and materials science to develop intelligent systems capable of interacting with and manipulating the physical world. Picture self-healing infrastructure, shape-shifting materials, or robots with the dexterity of a human hand. Rather than replacing generative or applied AI, physical AI complements them, forming a trio that bridges the gap between digital intelligence and the physical environment.

As this technology evolves, AI could extend beyond screens and servers, integrating seamlessly into our physical surroundings. We might witness the rise of smart cities that adjust to environmental shifts and medical devices that respond instantly to the body’s needs.

As the AI landscape rapidly grows, even industry experts struggle to keep up. With each new application, from autonomous vehicles to robotics, comes a new set of terms, leaving many wondering, “How many types of AI are there?”

For decision-makers and the curious, the focus should be on the potential applications and impacts of AI rather than getting lost in the terminology. AI isn’t a single entity but a diverse ecosystem of tools and techniques, each evolving to address different needs. The key is not how many types of AI there are, but which one is best suited to solve your specific business challenges.