At the 2026 SME AX Leaders Forum, LG CNS executive Myeong-chang Guk emphasized that the path to achieving 100% factory and logistics automation lies in the integration of “Mobile Automation” and Physical AI. Guk, a senior official at the South Korean IT service provider, identified autonomous mobile robots (AMRs) as the cornerstone of this technological shift, arguing that traditional static automation is no longer sufficient to meet the complex demands of modern industrial environments.
Physical AI, as defined in industry discourse, refers to artificial intelligence capable of interacting with the physical world through robotic hardware. By combining real-time data processing with physical mobility, these systems allow factories to operate with greater flexibility than fixed assembly lines, which often struggle to adapt to rapid changes in production requirements or supply chain variables.
The Role of Physical AI in Industrial Transformation
The integration of Physical AI into logistics and manufacturing is designed to bridge the gap between digital planning and physical execution. According to industry analysis, Physical AI allows robots to perceive, reason, and act in unstructured environments, moving beyond pre-programmed paths to navigate obstacles or handle varied inventory items autonomously. This capability is critical for companies aiming to reach full automation, as it reduces the need for human intervention in repetitive or dangerous logistics tasks.
LG CNS has been actively expanding its smart logistics solutions, focusing on the deployment of high-performance robots that function as the “hands and feet” of a factory’s digital brain. By utilizing AI-driven software to manage these physical assets, firms can optimize throughput, decrease downtime, and ensure that material flow remains consistent across large-scale facilities.
Mobile Automation as a Strategic Pillar
The “Mobile Automation” framework discussed by Guk centers on the ability of automated systems to relocate and reconfigure themselves. Unlike traditional conveyor belts or static robotic arms, mobile robots can be redeployed to different areas of a warehouse or factory floor based on real-time demand. This agility is increasingly sought after by manufacturers facing labor shortages and the necessity for “mass customization”—the ability to produce small batches of diverse products efficiently.
The SME AX Leaders Forum, which brings together leaders in small and medium-sized enterprise (SME) digital transformation, serves as a platform for discussing how these advanced technologies can be scaled for businesses beyond global conglomerates. The adoption of Physical AI is seen as a way to lower the barrier to entry for smaller firms, provided the technology remains interoperable and scalable.
Challenges and Future Outlook
Despite the potential for 100% automation, experts note that the transition requires significant investment in infrastructure and data standardization. Physical AI relies heavily on the quality of data collected from the factory floor; without accurate, real-time telemetry, even the most advanced robots cannot make informed decisions. Furthermore, the safety protocols required for human-robot collaboration remain a critical focus for regulators and industry standards bodies worldwide.
The next phase for LG CNS and other industrial AI providers involves refining the “brain” of these robots to handle increasingly complex manipulation tasks, such as picking delicate items or navigating tight spaces in legacy buildings. The industry is expected to see further updates on these deployment strategies during the upcoming year as pilot programs transition into full-scale industrial implementations.
Readers interested in the ongoing developments of industrial automation and smart manufacturing are encouraged to follow official announcements from the SME AX Leaders Forum and industry-specific trade journals for updates on future technology rollouts and case studies. Please share your thoughts on the impact of Physical AI in your industry in the comments below.