Artificial Intelligence

Intel and SAP Demonstrate Physical AI in Autonomous Warehouse

Intel and SAP have announced a collaboration to bridge business IT systems with operational technology by utilizing Physical AI to drive warehouse automation.

Radwan AbdulhadiEditor and technology writer

Published: October 28, 2026 · Updated: October 28, 2026 · 3 min read

Intel and SAP Demonstrate Physical AI in Autonomous Warehouse — Image: Intel Newsroom

Bridging Enterprise IT and Operational Technology

Intel announced a collaboration with SAP to bridge business IT systems and the operational technology that controls physical equipment and processes through Physical AI. According to the [Intel Newsroom](https://www.intel.com/content/www/us/en/newsroom/news/artificial-intelligence/intel-demonstrates-physical-ai-action-with-sap.html), this initiative establishes a model in which business intent can drive physical action while status, outcomes, and exceptions flow back into enterprise systems, creating a closed loop in action.

The two companies demonstrated this capability through a proof of concept showing how Physical AI can automate warehouse material handling. By connecting SAP Extended Warehouse Management business context and workflow orchestration with Intel-powered edge AI and robotics hardware and software, enterprise requests are turned directly into autonomous robot tasks.

Autonomous Warehouse Operations in Action

During the demonstration, requests were initiated in SAP EWM and dispatched to autonomous robots equipped with Intel's edge AI hardware and software. These robots successfully transported materials and reported task status and completion back to SAP EWM.

The proof of concept successfully demonstrated tangible operational improvements, including a reduction in transport distance and a decrease in repetitive manual handling. Unlike standalone robot automation, this approach closes the IT and operational technology loop by supplying business context, governed workflows, and process rules alongside a real-time edge AI foundation.

Executive Perspectives on Physical AI

Industry leaders from both organizations highlighted the strategic significance of integrating enterprise software with edge robotics. John Healy, Vice President and General Manager of Industrial and Robotics at Intel, noted that organizations want to connect AI directly to physical operations, moving Physical AI from business decision to real-world execution.

Dr. Lukasz Ostrowski, Head of Physical AI and Robotics at SAP Research and Innovation for SAP SE, emphasized that Physical AI can reshape operations by connecting enterprise systems with operational technology to help customers integrate AI-driven automation into core processes while preserving flexibility.

Foundational Hardware, Software, and Architecture

To operationalize and scale multimodal AI, Intel provides a foundation featuring scalable heterogeneous compute where CPUs, GPUs, and NPUs work together. This setup supports local perception, inference, navigation, inspection, and real-time control through industrial-ready silicon, open software, OpenVINO Physical AI, Physical AI Studio, and the Robotics AI Suite.

Furthermore, the initiative relies on [The open, robot-agnostic architecture](https://architecture.learning.sap.com/docs/ref-arch/0f87e5) designed to preserve customer choice across robot vendors, operating systems, AI models, and cloud or on-premises deployment approaches without vendor lock-in.

Moving Forward to Enterprise Deployment

Together, SAP and Intel aim to turn this initial proof of concept into a repeatable blueprint for enterprise Physical AI. This effort focuses on helping customers scale intelligent automation across sites, robot platforms, and operational use cases while preserving deployment flexibility.

Additional information on semiconductor design and manufacturing can be found by visiting [intel.com](https://www.intel.com/), where engineers continue to develop technologies that shape the future of computing and enterprise capabilities.