[Reading Science] AI with a 'Body': Will It Replace Humans?

Realization of Humanoids through Generative AI:
LLM and LMM Learning Accelerates Progress
Physical AI and Robotics Combine:
Immediate Labor Deployment Without Additional Infrastructure
Citibank Projects 648 Million Units and
$7 Trillion Market by 2050

Can artificial intelligence (AI) that has acquired a 'body' replace humans? With the development of 'Physical AI' led by Jensen Huang, CEO of NVIDIA, humanoid robots resembling humans are becoming a reality.

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DeepSeek has demonstrated that AI can be implemented more cheaply and efficiently than the large language models (LLMs) currently in use. Jensen Huang added fuel to this by introducing the concept of 'Physical AI.' In his keynote speech at CES 2025, the world's largest consumer electronics and IT exhibition held last month in Las Vegas, USA, he stated, "The ChatGPT moment for robots is approaching. The next frontier of AI is Physical AI."

Physical AI refers to AI embedded in physical devices such as humanoid robots or autonomous vehicles. AI is implanted in devices with physical forms, enabling them to communicate externally, generate and accumulate data, learn autonomously, and act. In essence, the device itself functions as the ultimate evolved form of AI.

The Dream of Scientists to Create Human-like 'Humanoid' Robots, Once Impossible

Humanoids have been a symbol of future technology, appearing consistently from Karel ?apek’s play?the origin of the word 'robot'?to various science fiction (SF) works. Many scientists have tried to create humanoid robots resembling humans, but reproducing walking, hand movements, and agile motions like real people was impossible.

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Even when developed, humanoid robots lacked practicality and were used mainly to showcase technological prowess. Japan’s ASIMO and South Korea’s HUBO were monumental in demonstrating technological progress, but finding practical applications was difficult. Japan attempted to deploy robots to assist nursing patients, but it was not very successful.

However, the situation changed with the advancement of generative AI technology. The commercialization of humanoid robots, which previously existed only as prototypes in laboratories, has rapidly progressed. First-generation humanoid robots, which could only walk and perform limited tasks, are evolving into second-generation robots that learn human behavior, communicate, and perform a wider range of tasks through large language models (LLM) and large multimodal models (LMM) that learn in the same way humans perceive objects.

Jensen Huang, CEO of NVIDIA, explaining the popularization of humanoid robots. Photo by Asia Economy DB.

Jensen Huang predicted that robots, including humanoids, are at the center of Physical AI, and that humanoid robot technology will dramatically advance through AI training within 2 to 3 years. In the future, humanoids will become as common as buying a car.

Rapid Commercialization of Complete AI with a Body through AI Technology Development

AI has become a complete entity by acquiring a robotic body. Since humanoid robots can replace human roles themselves, unlike autonomous robots, they do not require separate infrastructure such as removing curbs. They can be deployed directly into work environments designed for humans.

Structural social changes worldwide, such as accelerating low birth rates and aging populations, and the retirement of the baby boomer skilled labor generation, have heightened the need for humanoid robots. In the United States, there is a severe shortage of workers in specific professions such as truck drivers, teachers, nurses, and pilots. China, with a population of 1.4 billion, is also struggling to find workers in rural areas, factories, and nursing facilities, leading to declines in food self-sufficiency and factory operation rates. There is hope that humanoid robots will replace these workers. These circumstances underpin why the U.S. and China are leading the humanoid robot market.

According to the International Labour Organization (ILO), labor accounts for more than 50% of the global GDP. North America, in particular, is the largest market, with labor comprising over 60%. Humanoid robots can replace more jobs in this region.

The global humanoid robot industry is expected to grow steeply. Goldman Sachs estimated last month that the global market for humanoid robots will reach $38 billion (approximately 55 trillion KRW) by 2035. Citibank, in its December report 'The Rise of AI Robots,' analyzed that by 2050, the humanoid robot market will consist of 648 million units worth $7 trillion (approximately 1,129 trillion KRW). Deloitte, one of the world's top four accounting firms, projected that demand for humanoid robots, which was 2.093 million units last year, will increase more than sixfold to 13.295 million units by 2029.

Global Market Led by the U.S. and China, Over 50 Types of Humanoid Robots in Development

Currently, more than 50 types of humanoid robots are under development worldwide, with increasingly diverse functions. Agibot by ZhiYuan Robot (China) can sew; H1 by Unitree (China) can move at speeds of 3.3 m/s and dance; Atlas by Boston Dynamics (USA) can perform backflips and parkour. There is also Phoenix 7th generation by Sanctuary AI (Canada), which can learn complex tasks within 24 hours, and Unitree’s G1, which can fold itself and put itself into a cupboard.

The price drop of humanoid robots is also fueling demand. According to Goldman Sachs, the price per humanoid robot fell by 40% from $250,000 (approximately 362 million KRW) in 2022 to $150,000 (approximately 217 million KRW) in 2023. Macquarie, an Australian investment bank, forecasts that due to cost reductions from mass production and economies of scale, the price per humanoid robot will drop to $74,000 (approximately 170 million KRW) this year and further to $22,000 (approximately 31.8 million KRW) by 2035.

Elon Musk, CEO of Tesla, announced that the price range of their humanoid robot Optimus will be around $25,000 (approximately 36.2 million KRW). At this rate, based on the U.S. minimum wage of $7.25 (approximately 15,000 KRW), the investment can be recovered in 36 weeks. This means there is no hesitation in using humanoid robots.

Professor Kim Beomjun of the Humanoid Generalization (HuGe) Laboratory at the Korea Advanced Institute of Science and Technology (KAIST) said, "Humanoid robots can replace all human labor. Although they are still in the research and development stage, commercialization is imminent." He added, "Korea is currently keeping up well with the trend. We have secured our own technology, and with a little more development, we could even surpass the U.S. and China."