Physical AI: Concepts, Techniques, and Challenges

arXiv:2610.27045v1 Announce Type: new Abstract: In recent years, physical artificial intelligence (physical AI) has experienced rapid development, capturing significant attention in academia and industry. However, the field has yet to reach consensus on its definition, technical landscape, and core challenges. To address this gap, this monograph seeks to define physical AI, present its technical landscape, and examine each key technical subfield in depth. In doing so, it establishes a unified framework for Physical AI: artificial systems that perceive, model, and act upon the physical world through continuous feedback under real-world constraints. Further, this monograph distinguishes physical AI from conventional digital AI, embodied AI, cyber-physical systems, and digital twins. It develops the foundations of physical AI across physics, control, cognition, learning, and reasoning. It reviews key methodologies, including multimodal perception, physical data and simulation, world models, embodied foundation models, motor-control systems, multi-agent coordination, and hardware-software co-design. Furthermore, it examines applications spanning robotics, manufacturing, infrastructure, scientific experimentation, and autonomous services. Particular attention is given to sim-to-real transfer, reliability, real-time execution, evaluation, safety, governance, and long-term deployment. By connecting perception, prediction, decision-making, action, and adaptation in a closed loop, this monograph identifies the technical challenges and research directions required to advance from narrow automation toward more generalizable physical AI and, ultimately, physical artificial general intelligence (Physical AGI).