AI agents in other sectors
In this section, we will discuss how LLM agents are having and will have a global impact across a range of industries.
Physical agents
Physical AI agents (for example, robots) are LLM agents that are capable of navigating the real world and performing actions. Thus, they can be considered systems that are embodied and integrate AI with the physical world. LLMs in these systems provide the backbone for reasoning and contextual understanding. On this backbone, other modules such as memory, additional skills, and tools can be added.

Figure 11.2 – LLM-based agent (https://arxiv.org/pdf/2501.08944v1)
Unlike a virtual agent, a physical AI agent must also understand and adapt to physical dynamics such as gravity, friction, and inertia. Being able to understand physical laws allows it to be able to navigate the environment and perform tasks.
There are several advantages to using an LLM for a physical agent:
- Human...