Physics-Grounded AI
Building the Future of Intelligent Manufacturing with Physics-Grounded AI
9 Oct 2025
A new wave of AI is transforming heavy industry, not by chasing more data, but by embedding the laws of physics into machine learning to deliver safer, smarter, and more reliable automation.
Executive Summary
For decades, the promise of AI in manufacturing has collided with real-world challenges. Scarce data, high costs and unpredictable environments have slowed adoption at scale. A new approach points to a path forward: combining the rigour of physics with the power of machine learning. This hybrid approach doesn’t just predict. It anticipates, with near real-time accuracy: 98% at 50 milliseconds, 86% at one second. The result? Smarter automation, lower costs, and faster innovation for industries that can’t afford any mistakes.

The Mirage of Pure Data
Automotive manufacturing has long coveted AI-driven efficiency. Yet in practice, purely statistical machine learning models fall short. They overfit noise, can hallucinate when conditions shift, and demand massive volumes of clean data that factories rarely have.
Take robotic welding as a case in point. It’s the backbone of aerospace and automotive production. But weld instability leads to resource-draining rework, costly downtime, and worst of all, safety risks. Generic AI is not designed to handle such complexity, making model deployment very challenging in industrial automation.
This challenge is not unique to manufacturing, but to the broader heavy industrial space. In refineries, for instance, generic AI models often stumble under the weight of domain complexity. What prevails is applied intelligence, where models are trained with physics constraints and domain context.
When Physics Joins the Room
That’s where physics-grounded AI comes in. Instead of drowning algorithms in more data, these models are directly embedded with the laws of physics. With physics-informed neural networks (PINNs), the system doesn’t just learn from signals; it knows the science of the process itself.
The payoff is massive. In welding, where a tiny wobble in molten metal can compromise a spacecraft fuel tank, physics-grounded AI doesn’t wait for failure. It predicts instability before it cascades, with a 98% accuracy at a 50-millisecond horizon. That foresight gives manufacturers a chance to intervene before damage is done.
This shift, from reactive to proactive, is transformative. Waste drops. Downtime falls. Safety improves. This playbook extends beyond welding. Imagine energy grids predicting load spikes or oil and gas systems anticipating emission surges. When AI aligns with physics, industries move from firefighting to foresight-driven.
The Cloud Learns, the Edge Executes
Foresight alone isn’t enough. The system must adapt. That’s where the marriage of cloud and edge comes in.
At the edge, predictions happen in real time. In the cloud, models replay scenarios in an iterative learning cycle. Updated weights flow back to the factory floor without erasing prior knowledge. The result is a self-improving loop that handles both scale and nuance, from mass production to bespoke runs.
This architecture isn’t new. Finance and telecom have relied on it for decades. But those tools can’t be lifted and applied directly to the refinery floor. The lessons are valuable, yet the demands of heavy industry are unique. That’s why Orbital was purpose-built for energy operations, where milliseconds and megawatts matter.
And with cloud infrastructures capable of significantly slashing carbon emissions, the model aligns operational efficiency with ESG compliance and sustainability wins.
Solving the Hallucination Problem
General AI is not meant for industrial deployment. Why? Because in complex industries, false predictions aren’t just an inconvenience an operator can re-query; they are mission critical.
By constraining outputs to natural laws, physics-grounded AI models address hallucinations. They don’t manufacture a response in the absence of context. They stay tethered to the reality introduced in the model’s pretraining phase. That safeguard is what makes physics-grounded AI usable in domains where the cost of error is measured in millions of dollars and human lives.

The Orbital Approach
Orbital, a physics-grounded, domain-trained foundation model for energy operations, extends this vision into practice.
It embeds chemical engineering and physics directly into the model architecture. A fine-tuned LLM interprets raw sensor data, surfacing the right physical equations that ensure predictions are both accurate and consistent with natural laws. The result? Insights that are explainable, safe, and reliable, addressing the long-standing black-box limitations of traditional AI. This is exactly what complex industries like refineries require.
Orbital embeds chemical engineering and physics directly into the model architecture. The result: predictions that are explainable, safe, and reliable. This is exactly what complex industries like refineries require.
From Possibility to Discipline
Heavy industries such as automotive manufacturing and downstream oil and gas are entering a new era of AI. The first wave was defined by pure data and statistical machine learning models. The next wave is physics-grounded AI.
Heavy industries don’t need more data. They need smarter data. They need systems that reflect the laws of nature as faithfully as the machines they govern.
This is how AI will scale in manufacturing, energy, and the industrial backbone of our economy: not through blind extrapolation, but through intelligence grounded in the laws of physics.
Walid is an Imperial and NYU alumni, currently working in applied AI applications for the energy sector. The Applied Computing team can be reached at info@appliedcomputing.com