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How to Rethink Risk for Safe Physical AI Deployment

Physical AI requires managing real-world effects and digital risks

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Mat Gilbert
John Robins
Wed, 12/03/2025 - 12:03
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Physical AI—the embedding of digital intelligence into physical systems—is a promising but sometimes polarizing technology. Optimists point to the upside of combining AI and physical hardware: Robot-assisted disaster zone evacuations, drone deliveries of critical supplies, and driver assistance that reduces crashes. Pessimists note the risks, cautioning that without proper guardrails, machines could act in ways misaligned with human needs.

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The reality is that physical AI has the potential to deliver safety benefits. But it also poses safety risks without intelligent safeguards.

Why physical AI needs a unique approach to safety

The successful deployment of physical AI requires a mindset that treats safety as an integral, nonnegotiable design goal, not an afterthought. Most AI deployments require digital risk management to prevent data breaches and to correct other errors that can cause financial, compliance, and reputational harm. With physical AI, the stakes are higher because of the potential for human suffering or loss of life caused by a collision or a surgical misstep.

Physical AI adoption requires trust, and trust requires safety. High-visibility failures like autonomous vehicle crashes have led to fear, and now only 13% of U.S. drivers trust autonomous vehicles. Manufacturers, regulators, and societies must create physical AI safety strategies that earn public trust. The way forward is not “move fast and break things,” but to move with purpose, build with care, and harm no one.

Technical strategies to build safe physical AI systems

Safety must be designed from the start and prioritized over feature velocity. For example, “fully autonomous systems” still require human supervision because even current state-of-the-art systems still struggle with edge cases and open-world uncertainty. Staged deployment and operational limits are built into safety-first strategies for physical AI.

Start small and de-risk

Prioritize high-frequency, low-stakes physical AI tasks first. Activities that occur often enough to justify automation but have minimal consequences for failure are good starting points. Rigorously validated updates can gradually expand capability while maintaining safety.

Ensure data integrity and quality

This core physical-AI safety pillar depends directly on the quality of training and sensor data. The saying “garbage in, garbage out” takes on a new, more dangerous meaning: “garbage in, crash.” 

For example, an autonomous-vehicle model trained exclusively on data from sunny weather conditions might operate unsafely when it encounters snow. The solution is to implement quality processes, including meticulous data-labeling, thorough validation and active management of data drift as real-world conditions evolve. It’s also critical to ensure that the training data fully represent the complete operational environment.

Design for people

Physical AI systems must be designed around human interaction, using “politeness protocols” to govern behavior, “mitigate risks, and facilitate interaction.” For example, hospital service robots should slow down in crowded corridors, yield to humans, and maintain respectful distances as a human would. By clearly announcing its presence with a subtle beep or spoken phrase, it can avoid colliding with or startling staff and patients.

For quality engineers, this introduces an evolution in validation: “soft” metrics like user comfort and trust must now be quantified alongside traditional hard metrics like mean time between failures (MTBF). Because consistent, predictable behavior is what allows people to feel safe, user experience effectively becomes a quantifiable safety metric.

Engineer reliability

Reliability in safety-critical systems is a deliberate engineering goal achieved through redundancy and fail-safes. Physical AI systems must include multiple, independent sensing and backup components.

Autonomous vehicles, for example, typically implement this by fusing data from a suite of sensors, including cameras, light detection and ranging (LiDAR), and radar. This layered approach allows the system to cross-verify obstacles and build a single, robust understanding of its environment. Crucially, if one sensor subsystem fails (for example, a camera blinded by the sun), the others can compensate, allowing the vehicle to continue operating safely or at least execute a controlled, safe stop.

Integrate cyberphysical security

Secure physical AI must bridge both the digital and the physical, because a system poses a direct physical threat. A hacked forklift, drone, or medical robot is more than a data breach; it’s a potential weapon.

Therefore, safety and security design are inseparable. Systems must be designed with redundancies to defeat attacks like sensor spoofing or command injection—for example, a physical AI system shouldn’t trust one data source implicitly; it should cross-validate GPS data with visual landmarks or other sensor data. This layered defense ensures that an attacker can’t easily force the AI to behave dangerously.

Constrain autonomy

As a physical AI system’s autonomy increases, its range of potential behaviors expands, making it more difficult to predict and constrain. To ensure safety, strict behavioral constraints must be embedded directly into the system’s design.

These constraints can be simple, hard-coded rules. For example, a delivery drone can be geofenced, making it programmatically impossible for it to enter restricted airspace or operate over designated crowded areas.

Generative AI amplifies this challenge. Designers need to anticipate and mitigate the risks of models that can generate novel actions. A robot using a VLM (vision-language-model) to interpret its surroundings and follow instructions has failure modes different from traditional robotic systems. For example, a VLM might “hallucinate” or misinterpret a visual cue—a form of perceptual error. If that robot is tasked with a leak inspection and misidentifies a live power conduit as a harmless pipe, it may attempt to grab it. This means that creating guardrails that limit the system’s ability to generate new actions is essential to prevent this perceptual error from translating into a catastrophic, unconstrained action.

Plan for intervention

Humans must have a reliable way to intervene if a physical AI system malfunctions. But the design of that intervention is critical. For example, industrial collaborative robots (cobots) contain sensors that halt the cobot’s motion when they detect a person that’s too close, or an unexpected force. But simple kill-switches aren’t safe in every situation. A self-driving vehicle that shuts down in highway traffic, for instance, replaces one danger with another.

Because a dead stop isn’t always a safe state, the safest physical AI systems are designed for shared autonomy, often called dynamic human-in-the-loop. This approach is proactive rather than reactive. The system is designed to recognize a low-confidence scenario (a situation where it is unsure) and request human confirmation before it acts, avoiding the need for an emergency stop.

Validate for safety

Technical safety must be reinforced through extensive testing, validation, and certification. This process requires running the AI through millions of varied virtual scenarios in simulation that’s paired with human-supervised real-world pilot programs.

A primary challenge is the “sim-to-real” gap, where a virtual model fails to capture the complexity of the physical world. Synthetic data help bridge this gap by injecting rare but critical edge cases into testing. For example, programmatically adding synthetic dust to a sensor’s view, or modeling sun glare at a particular angle can help the model avoid failing in rare scenarios.

We’re now seeing a general shift from prelaunch validation to continuous validation, because over-the-air (OTA) updates continuously change the product in the field. OTA updates often require new in-operation validation processes to maintain safety after every update.

In some cases, physical AI can align with domain safety standards such as ISO 26262 and SOTIF/ISO 21448 (automotive), ISO 10218 and ISO 13849 (industrial robots), and ISO 14971 (medical devices).

Deploy gradually

No test can cover every real-world contingency. So it’s critical to roll out physical AI models and use cases gradually, with human supervision as the AI proves itself over time.

Physical AI safety strategies already in use

Organizations at the leading edge of physical AI applications already have frameworks that address the above strategies. For example, an autonomous driving company has built an autonomous operations safety framework that includes:
• Hardware performance verification and validation for vehicles, sensors, backup steering, control actuators, and more
• Behavioral capability assessment in the areas of incident avoidance, trip completion, and adherence to local driving laws
• Operational functions such as monitoring with human support, risk management, and field-safety data collection and analysis

Along similar lines, an AI research lab recently announced agentic AI robotics models that have a “frontier safety framework” that has evolved over time to “stay ahead of possible severe risks.” Among the framework updates in 2025 were risk management strategies to prevent data exfiltration and deliberate misbehavior by autonomous systems.

Regulators must address physical risk

The goal for policymakers is to prevent harm and build public trust without unduly hampering technological progress. Right now, we see three general approaches at the national and regional level.

In the United States, regulations are often reactive and industry-led. But this can produce uneven safety baselines and increased public mistrust. The European Union regulates emerging tech to prevent harm, and the EU AI Act classifies physical AI systems such as robotics and autonomous vehicles as high risk. Governments in China, Japan, and South Korea also prioritize safety through regulations and strategies such as China’s designated pilot zones for robot taxis.

Regulation targeting AI models or infrastructure through licensing or strict liability rules may stifle innovation and favor incumbents over newcomers. One way to combine proactive safety with innovation is to regulate physical AI at the application level—surgical robots or self-driving cars, for example—rather than issuing blanket rules for AI models and foundational technologies. Application-level rules can support more stringent oversight for high-risk or wide-scope applications, and lighter requirements for lower-risk applications.

Public opinion and trust considerations for physical AI

The World Economic Forum’s DRIVE-A and AVIATE initiatives are among the approaches that “examine questions of safety, ethics, and accountability for autonomous vehicles and aviation.” These initiatives include the need for public trust in physical AI programs to gain acceptance and adoption.

However, earning and maintaining public confidence isn’t as simple as preventing accidents. Because the world is complex and full of potential edge cases, system designers must consider the ethical foundations and potential outcomes of their design choices. Safety regulations must align with cultural expectations and fair treatment laws to gain public acceptance and trust.

Education and familiarity also matter for cultivating trust and adoption. For example, users need to clearly understand what physical AI devices can safely do, and what they can’t do, so they can use the devices appropriately. It’s also important to show the public how these systems benefit humans. Seeing a drone safely bringing disaster supplies to a flood-stricken area or watching a robot help a disabled neighbor with household tasks can make people more comfortable with these new systems.

A mindset shift for a safer, more efficient world

Real-world deployments in robotics, drones, and healthcare have succeeded in preventing accidents and saving lives. But they’ve also taught designers important safety lessons through edge-case failures. For physical AI to deliver the full range of its potential benefits and maintain user trust, we need to build, certify, and use this type of AI technology differently from other forms, with a core focus on real-world safety to earn and keep trust.

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