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CNBC2026-06-01

The next wave of AI: Analyst explains how embodied AI is taking shape - CNBC

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Ah, the next wave of AI has arrived, and it's taken the form of embodied AI — because disembodied AI wasn't nearly enough of a threat to our dignity. Neil Shah of Counterpoint Research, a chap who clearly enjoys a good buzzword, explains that AI is now being integrated into physical systems like humanoid robots and autonomous vehicles. Because what the world really needs is a robot that can walk into a meeting and hallucinate a quarterly report, or a self-driving car that gets lost in a car park for three hours. The Prometheus myth is back, and this time the fire is strapped to a pair of wobbly legs.

But wait, there's more: South Korea is suddenly 'strategically important' in this embodied AI future. Yes, the nation that brought us K-pop and Samsung is now the nerve centre of robot-human coexistence — what could possibly go wrong? And Nvidia, the company that can't seem to stop making GPUs, is apparently the kingmaker of 'sovereign AI'. Sovereign AI! Because nothing says 'national sovereignty' like being utterly dependent on a single American chip manufacturer for the brains of your national robot army. The irony would be hilarious if it weren't so nakedly transparent.

So here we are, standing on the brink of a future where your Roomba might unionise, and your car might have a nervous breakdown during a traffic jam. Neil Shah paints a picture of a world where AI walks among us, but he conveniently glosses over the bit where it trips over a curb and sues the city for damages. Embodied AI: it's like disembodied AI, but with real-world consequences. Cheers to that.

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● REC · 2026