How Physical AI Is Rewiring Machines

Artificial intelligence has spent the last several years getting smarter on screens, recommending what to watch, drafting what to write, answering what we ask. This type of progress is now spilling out into the physical world, where machines are starting to move, sense, and adapt on their own. In this episode of Tech Transformed, host John Santaferraro, Founder and Analyst at Ferraro Consulting, talks with Prith Banerjee, Senior Vice President of Innovation at Synopsys, about what happens when AI has to obey the laws of physics instead of just the patterns in a dataset.

Banerjee brings a rare vantage point to the conversation. Before Synopsys, he led HP Labs worldwide, served as group CTO at ABB and Schneider Electric, and ran engineering simulation software company ANSYS as CTO until its acquisition by Synopsys roughly a year ago - a deal that now anchors much of what he describes as Synopsys's "silicon to systems" strategy.

The Road to Physical AI

Banerjee traces AI's progress through distinct phases he's tracked across his career. It started with analytics, which was the correlation engines behind a Netflix recommendation, or the placement and routing improvements Synopsys has long applied inside its own chip design tools. Generative AI came next, giving machines the ability to produce original language, images, and video from a prompt rather than just surface existing content. Agentic AI followed close behind, handing off entire tasks, drafting a slide deck, prepping a sales call to systems that act more like assistants than tools.

Physical AI is the phase Banerjee sees unfolding now, and it's a different kind of leap. Instead of learning from words or pixels, these systems learn from real physical measurements: pressure, temperature, stress, and strain. Training that kind of intelligence takes synthetic data generated across structural, fluid, and electromagnetic physics precisely the simulation capability ANSYS brought into Synopsys.

Teaching Robots to Learn Like Humans

The shift shows up clearly in how robots are built today. A decade ago, getting a robotic arm to pick up a bottle without crushing it meant writing enormous programs, sometimes 100,000 lines of code specifying exactly how each motor should move. Physical AI throws that playbook out. Banerjee compares it to teaching a child to ride a bike: nobody narrates which pedal to push. The child watches, tries, falls, and adjusts.

Robots now learn the same way, refining their behaviour through reward and penalty as they attempt a task thousands of times. Autonomous vehicles follow the identical pattern at far greater scale, learning from millions of hours of driving footage until they recognise, for instance, that a pedestrian stepping into the street means stop. Synopsys works with autonomous vehicle and robotics companies to generate the synthetic training data that makes this kind of learning possible without requiring endless real-world testing.

Engineering the Intelligent Systems of Tomorrow

That intelligence has to run on something, and the conversation turns to what it takes to build the silicon underneath it. Chips that once held a few hundred thousand transistors now carry tens or hundreds of billions, some approaching trillions, stacked using advanced 3D and chiplet techniques. Designing them means balancing power, performance, and thermal limits simultaneously rather than simply over-engineering for safety margin, which Banerjee calls co-design.

Synopsys is tackling that complexity with what it calls agent engineers. AI systems introduced at its Converge conference that work alongside human chip designers on tasks like RTL design, test benches, and sign-off, effectively multiplying engineering capacity without multiplying headcount. The same pressure shows up at the edge, where trained AI models have to run inside a drone, car, or warehouse robot on a fraction of the power a data centre would use, with no room for cloud latency. Banerjee shares his perspective on why many AI projects struggle. He argues that the real challenge lies in balancing innovation with trust: robots operating alongside people raise questions of safety and collaboration, while autonomous systems connected to networks demand security, traceability, and clear explanations for the decisions they make.

His advice to engineering leaders is to treat this shift as organisation-wide rather than a single team's problem, from legal and marketing functions already using agentic tools to engineering teams rethinking how code gets written. The goal, as he puts it, isn't replacing people but making them capable of far more than they could manage alone. If you would find out more about this, visit Synopsys or follow Prith Banerjee on LinkedIn.

Takeaways

• Evolution of AI from analytics to physical AI.
• Role of synthetic data in training physical AI.
• How robots learn through physical interactions.
• Complexity and innovation in chip design.
• Agentic AI and its applications in engineering.
• Challenges of edge AI in autonomous systems.
• Security, governance, and safety in physical AI.