EY Expert: The Biggest Bottleneck in the Embodied AI Industry is Large-Scale Commercial Implementation

In recent years, the embodied AI field has become highly competitive, with large-scale applications emerging in some sectors. Patrick Ho, Managing Partner of Greater China IPO Services at EY, recently stated in an interview with a Securities Times reporter that the most significant challenge currently facing the embodied AI industry is the scalability and sustainability of commercial implementation. Although technological breakthroughs have been achieved in labs or on a small scale, the key challenge remains how to efficiently and cost-effectively apply these technologies in real-world scenarios and generate profits.

The core of embodied AI technology lies in the deep integration of artificial intelligence with the physical world, enabling robots to achieve autonomous perception and decision-making in complex environments. "Therefore, scenarios and industries with clear market demand, strong growth potential, and high technological compatibility stand to benefit the most from embodied AI technology," Ho said. For example, in the construction and infrastructure sectors, products like intelligent construction robots can enhance efficiency, reduce environmental pollution and operational risks, and lower construction costs. In the energy industry, inspection robots can replace humans in hazardous environments, ensuring personnel safety.

Ho believes that accelerating the commercialization of embodied AI requires multiple measures, including: focusing on vertical scenarios to reduce implementation difficulty; establishing joint pilots or ecosystem partnerships with industry leaders; strengthening supply chain and cost control; adopting a phased financing approach aligned with commercialization milestones and cash flow needs; etc.

Regarding this, Ho mentioned that an equity restructuring often signals a company's move towards higher transparency and governance standards, which helps boost investor confidence and reduce governance risks. Embodied AI companies are still in a critical phase of technology verification and application promotion, possessing long-term growth potential. Therefore, financing activity in the primary market is expected to continue for some time. Simultaneously, investors should focus on companies' financial health, commercial viability, and technology implementation capabilities.