Hyundai Motor Group is starting to look like a company building machines that act in the real world. The change centres on physical AI: Where AI is placed into robots and systems that move and respond in physical spaces. Current efforts are mainly focused on factory and industrial settings.
Hyundai’s move into physical AI systems
In an interview with Semafor, chairman Chung Eui-sun said robotics and AI will play a central role in Hyundai’s next phase of growth, pushing the company beyond vehicles and into physical systems. The group plans to invest $26 billion in the US by 2028, according to United Press International, building on roughly $20.5 billion invested over the past 40 years.
A large part of that spending is tied to robotics and AI-driven systems that Hyundai is combining into a single approach. Chung described robotics and physical AI as important to Hyundai’s long-term direction, adding that the company is developing robots to work with people not replace them.
From automation to collaboration
Hyundai is working on systems where robots and humans share tasks in the same space. This includes humanoid robots developed by Boston Dynamics, which Hyundai acquired a controlling stake in 2021. Machines are being prepared for manufacturing use, with deployment planned around 2028. The company expects to scale production to up to 30,000 units per year by 2030, with the goal to improve work on the factory floor. Robots may handle repetitive or physically demanding tasks, while humans focus on oversight and coordination.
Chung said this kind of setup could help improve efficiency and product quality as customer expectations change.
Exploring uses beyond the factory
Current deployments remain focused on industrial settings, though Hyundai is exploring other uses. Potential areas include logistics and mobility services that combine vehicles with AI systems. These may affect deliveries and shared services.
Manufacturing as the first use case for physical AI
While these uses are still developing, manufacturing remains the main testing ground. Factories remain the place where Hyundai is putting these ideas into practice. The company is already working on software-driven manufacturing systems in its US operations, combining data and robotics to manage production.
Physical AI builds on this by adding machines that adjust their actions based on real-time data. Chung said changes in regulations and customer demand are pushing the company to rethink how it operates in regions. Hyundai’s response is a mix of global expansion and local production, with AI and robotics helping standardise processes.
Energy and infrastructure
The company continues to invest in hydrogen through its HTWO brand, which covers production, storage and use. Chung pointed to rising demand linked to AI infrastructure and data centres as one reason hydrogen is gaining attention. He described hydrogen and electric vehicles as complementary options. The idea is to offer different energy choices depending on how systems are used. As AI moves into physical environments, energy becomes a more visible constraint.
What physical AI means for end users
Most people will not interact with a humanoid robot in the near term. But they will feel the effects of these systems in other ways. Products may be built faster and services tied to mobility or infrastructure may become more responsive.
Hyundai sells more than 7 million vehicles each year in over 200 countries, supported by 16 global production facilities, according to the same UPI report.
A gradual transition
Hyundai is still a major carmaker, with brands like Hyundai, Kia, and Genesis forming the base of its operations. What is changing is how those vehicles – and the systems around them – are designed and managed.
Physical AI represents a change from products to systems. It places AI in the environments where work and daily life take place. That change is still in progress, and many of the systems Hyundai is developing will take years to scale. The company is building toward a future where machines work with people in the real world.
(Photo by @named_ aashutosh)
See also: Asylon and Thrive Logic bring physical AI to enterprise perimeter security
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