Robotics and physical AI are emerging as a major force in the global tech landscape. While many parts of the software industry face layoffs and uncertainty, this sector is experiencing massive investment. Nearly $19 billion flowed into physical AI and robotics startups in 2026 alone. This capital infusion signals a shift from research-heavy lab projects to commercial deployment at scale.
Sapir Hadad, Executive Director of the Fiverr AI Lab, notes that the industry currently sits at an inflection point. The combination of foundational AI models and improved hardware supply chains makes complex robotic systems viable for the first time. Recent examples include animatronic figures at theme parks and autonomous laundry-folding systems that achieve high success rates in domestic settings. This transition mirrors the evolution of digital AI over the last decade.
Israel has established a strong presence in this field, with over 125 startups focused on physical AI. Although Israel lacks the massive manufacturing infrastructure found in countries like the United States or China, local companies lean on strengths in sensing, computer vision, and multidisciplinary system design. The necessity of rapid, operational development within the local security climate encourages the production of efficient and creative solutions that are ready for field use.
For tech professionals currently in the software or SaaS sectors, this field presents a significant opportunity. The industry faces a substantial labor shortage and requires a wide range of skills beyond core robotics engineering, including product management, design, and infrastructure roles. While the transition involves different challenges than digital software development—such as the inability to patch physical hardware remotely—the foundational logic remains similar. As the industry moves toward creating a universal robot brain, professionals who enter now will likely play a role in building the infrastructure for the next two decades.