Advances in Physical AI Reshape Robotics, Automation
Enterprises are widely deploying AI systems for real-world functions, ISG Provider Lens® report says
STAMFORD, Conn.–(BUSINESS WIRE)–
Enterprises are rapidly adopting AI-enabled robotics in core operations to improve efficiency, resilience and safety, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® global Intelligent Robotics and Physical AI Services report finds that enterprises are building orchestrated fleets of intelligent machines embedded in logistics, infrastructure and industrial environments. These systems use innovations in physical AI that enable real-time perception, reasoning and action.
“Static automation no longer meets the needs of rapidly changing industries,” said Steve Hall, chief AI officer at ISG. “Enterprises are partnering with service providers to deploy AI-powered autonomous systems that continuously learn and adapt to new requirements.”
Many enterprises in North America are scaling warehouse automation and logistics robotics to address labor shortages and improve throughput. They are deploying autonomous mobile robots and drones to handle repetitive and high-risk tasks while increasing operational consistency. These systems enhance productivity by improving task completion rates and reducing manual intervention across supply chains. Adoption of broad-based robotics systems and services is accelerating as companies prioritize uptime and throughput.
The use of autonomous systems in real-world environments is improving service delivery and operational coverage. Drone delivery programs in the U.S. have exceeded 150,000 deliveries, demonstrating measurable gains in last-mile efficiency and fulfillment speed. In parallel, continuously operating AI-enabled security robots have reduced crime incident rates.
European enterprises are adopting AI-enabled robotics as part of a manufacturing digitalization push, with a strong emphasis on regulatory compliance, data sovereignty and cybersecurity. In Asia Pacific, government-backed industrial modernization initiatives are driving embedded AI and robotics adoption to increase manufacturing scale.
Enterprises are shifting toward flexible consumption of robotics to scale adoption more efficiently. Robotics-as-a-service models reduce capital expenses while enabling faster deployment and iteration of intelligent systems. At the same time, organizations are integrating robotics platforms with enterprise systems such as enterprise resource planning and warehouse management to enable end-to-end automation, continuous learning, improved decision-making and more resilient operations across complex environments, ISG says.
“The competitive advantage in robotics no longer lies in the machines themselves, but in the ability to orchestrate AI, data and operations at scale,” said Yash Jethani, principal analyst at ISG and lead author of the report. “Enterprises are seeking providers that can bring full-scale robotics projects to fruition with governance, interoperability and accountability. Success depends on effective simulation, deployment, multi-vendor integration and lifecycle ownership.”
The report also explores other trends in intelligent robotics, including the increasing importance of safety standards and the growing role of digital twins in validating and optimizing deployments.
For more insights into the robotics and physical AI challenges faced by enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The report evaluates the capabilities of 79 providers across three quadrants: Consulting and Transformation Services, Integration and Engineering Services and Managed Services and Robotics as a Service.
It names Hitachi Digital Services as a Leader in all three quadrants. Accenture, Capgemini and Infosys are named as Leaders in two quadrants each. ABB Robotics, Bastian Solutions, BCG, Booz Allen Hamilton, Brain Corporation, Daifuku, Deloitte, EY, Formic Technologies, GreyOrange, Honeywell Robotics, IBM, KNAPP, Knightscope, Locus Robotics, McKinsey & Co., Nomagic, OTTO (Rockwell Automation), Percepto, PwC, Siemens, SoftBank Robotics, SSI SCHÄFER, Swisslog, Symbotic, Inc. and Zebra are named as Leaders in one quadrant each.
In addition, Geek+, LTM, TCS and Vecna Robotics are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
A customized version of the report is available from Hitachi Digital Services.
The 2026 ISG Provider Lens global Intelligent Robotics and Physical AI Services report is available to subscribers or for one-time purchase on this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260512339568/en/
Press Contacts:
Laura Hupprich, ISG
+1 203-517-3100
[email protected]
Eric Arvidson, Matter Communications for ISG
+1 978-518-4542
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