Inside SAP R&D on the convergence of agentic and physical AI

"Physical" AI – artificial intelligence embodied in devices like robots, drones and self-driving cars – could be nearing a tipping point, thanks to recent advancements in large language models and agentic AI. The convergence of physical and agentic AI is giving machines the ability to sense their environment, make decisions and take action.

Practical business applications are already emerging. They're a major focus of research and development at SAP as the ERP market leader investigates how smart robots and other physical AI devices can work with enterprise applications to make businesses more intelligent and automated.

In this episode, we examine trends in physical and agentic AI, how they're transforming industrial automation, and the risks and challenges of implementation.

Featuring: Yaad Oren, Global Head of Research and Innovation at SAP and Managing Director of SAP Labs U.S.

In today's episode, we'll also cover:

• The role of software in physical AI's emergence as a serious business tool.
• Why 2026 represents a tipping point in physical AI's capabilities.
• Examples from SAP Labs.

References:

• Smarter robots: Agentic and physical AI converge in business
• Physical AI explained: Everything you need to know
• SAP article about physical AI partnerships

To learn more about enterprise applications, check out Search ERP.