AI Is Going Physical: How Devices Are Transforming the Future of Technology

Artificial intelligence is no longer confined to software on a screen. At the recent Axios House event in Davos, executives from Qualcomm, Gecko Robotics, and Meta revealed that AI is increasingly moving into physical devices, signaling a fundamental shift in how the technology is built, deployed, and used worldwide. This transition promises to unlock massive economic opportunities, reshape industries, and redefine the competitive edge for nations and companies alike.

During the January 19 discussions moderated by Axios’ Mike Allen, Ina Fried, and Dave Lawler, Qualcomm CEO Cristiano Amon, Gecko Robotics CEO Jake Loosararian, and Meta president Dina Powell McCormick shared insights on the rising role of AI in tangible technologies—from wearables to robotics and beyond. Loosararian emphasized that “AI is moving into the physical realm,” noting that early adopters of this shift could see advantages in productivity, safety, and environmental sustainability.

Amon highlighted the growing consumer adoption of physical AI devices, pointing out that AI-enabled glasses already surpass 10 million units, with potential to reach 100 million devices rapidly. For context, about 1.2 billion smartphones are sold each year, suggesting a massive market opportunity if AI-enabled wearables reach similar adoption. Powell McCormick added that this expansion will require extensive computational resources and infrastructure, specifically new data centers. She stressed the importance of building these responsibly, involving communities and empowering small businesses to contribute to the growing AI ecosystem.

The conversation also touched on broader economic implications. Loosararian argued that countries and companies that embrace physical AI quickly could gain major advantages in efficiency and output, citing examples like refining hydrocarbons with lower costs and reduced labor. This, he noted, directly affects GDP growth and long-term national competitiveness.

What Undercode Say:

The movement of AI from software to hardware represents a critical inflection point in technology. For decades, AI has thrived in the cloud, processing vast datasets and generating insights on servers. The shift toward physical devices—robots, wearables, industrial sensors—means AI will interact directly with the environment, people, and industries in real time. This requires not only innovation in AI algorithms but also in hardware design, energy efficiency, and local infrastructure.

Economically, the stakes are high. Nations that accelerate AI integration into physical devices can capture enormous value, from industrial automation to consumer markets. For instance, robotics in manufacturing and infrastructure inspection could reduce operational costs while increasing precision and safety. Wearables with AI agents could transform healthcare, logistics, and daily productivity, creating entirely new markets worth billions.

However, this growth comes with challenges. The proliferation of AI devices requires unprecedented computational power, translating to more data centers, energy consumption, and environmental considerations. Companies and policymakers must carefully balance expansion with community impact, as Powell McCormick emphasized. Small and mid-sized businesses could play a role here, becoming local builders of AI infrastructure and promoting decentralized innovation rather than relying solely on tech giants.

Moreover, physical AI raises questions about privacy, security, and ethical deployment. Devices in homes, workplaces, and public spaces could collect vast amounts of sensitive data. Designing these systems responsibly, with transparency and user consent, will determine whether society fully benefits from AI’s physical evolution.

Technologically, we can expect a convergence of AI, IoT, and edge computing. Devices will not only perform tasks locally but also coordinate with cloud-based AI to optimize processes. Qualcomm’s vision points toward a future where AI devices are ubiquitous, fast, and contextually aware, transforming industries from healthcare to energy. Gecko Robotics’ work suggests industrial applications will be an early frontier, while Meta hints at consumer-facing AI wearables becoming commonplace in everyday life.

Investment implications are clear. Venture capital and corporate R&D will increasingly target physical AI, from robotics startups to wearable innovation. Nations with supportive policies, skilled workforces, and regulatory clarity will likely dominate the next wave of AI-driven economic growth.

Fact Checker Results:

✅ AI-enabled glasses have exceeded 10 million units in sales, as reported by Qualcomm.
✅ Global smartphone sales are roughly 1.2 billion units per year, contextualizing wearable adoption potential.
✅ The shift to physical AI devices will require new data centers and substantial computational infrastructure.

Prediction:

🌐 By 2030, physical AI devices—wearables, robotics, and industrial sensors—could become as common as smartphones, transforming productivity, healthcare, and energy management.
⚡ Early adopters, both nations and companies, are likely to see significant economic and strategic advantages.
🔋 Investment in decentralized data centers and community-led AI infrastructure may become a global trend, balancing growth with sustainability.

This trend underscores that AI’s future is not just in the cloud—it’s in the real world, changing how humans live, work, and interact with technology on a daily basis.