AI just got physical

Today we are going to see at Sundance, Google DeepMind unveiled a short film where AI doesn’t just assist, it co-creates. It’s a glimpse at what happens when artists lead and machines follow. Also Honeywell says “physical AI” has arrived with over 200,000 real-world deployments now optimizing energy, logistics, and more in places like airports and factories.

In today’s post:

• AI Is Quietly Running Your Building Now

• Google DeepMind made a short film

• AI is moving fast but is your security?

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RESEARCH

Honeywell is bringing AI into the real world

Honeywell says “physical AI” is no longer experimental. In 2025 alone, over 200,000 buildings started using it from car factories to hospitals.

Here’s everything you need to know:

• “Physical AI” means AI that controls real-world systems like energy use, logistics, or manufacturing workflows.

• Honeywell’s president said it moved from pilot stage to full-scale deployment in just one year.

• It’s now used to manage energy sources in buildings based on time-of-day pricing and demand.

• Airports, hospitals, and factories are early adopters chasing efficiency, not hype.

• This isn’t ChatGPT; it’s AI deciding which machines run and when.

• Honeywell sees this as a long-term growth area, not just a tech trend.

• The shift suggests AI’s biggest impact might be invisible quietly optimizing the physical world.

While headlines chase AI that writes poems, the real transformation might be in places we never see HVAC systems, assembly lines, power grids. If “physical AI” keeps scaling like this, it could be the most boring and most important part of the AI revolution.

STRATEGY

The most human use of AI we’ve seen yet

At Sundance this week, Google DeepMind premiered “Dear Upstairs Neighbors.”
It’s an animated short where AI and human artists blur the line between dream and noise complaint.

Here’s everything you need to know:

• The film tells the story of Ada, a woman desperate for sleep and slowly unraveling.

• Every hallucination she has stomping boots, howling dogs is rendered in wild, painterly styles.

• Artists led the process, using traditional tools like Maya and TV Paint to sketch scenes.

• Then, DeepMind researchers used fine-tuned AI models (Imagen, Veo) to stylize and animate them.

• This wasn’t a prompt-and-go project they built custom workflows for creative control.

• “Video-to-video” techniques let animators rough out motion, then AI painted over it.

• The team learned that AI works best when it supports not replaces the artist’s hand.

This project isn’t about flashy AI breakthroughs it’s about collaboration. Artists shaped the models, not the other way around. The result? A film that feels deeply personal, yet powered by technology most people think of as impersonal. Maybe that’s the real future of AI in storytelling.

BREAKTHROUGH

Zscaler wants to lock down the AI lifecycle before it breaks

As AI floods the enterprise, Zscaler says security models need a reset. Their pitch: traditional firewalls can’t handle AI but Zero Trust can.

Here’s everything you need to know:

• Zscaler launched a unified platform to secure every phase of the enterprise AI lifecycle.

• It detects “shadow AI” unsanctioned apps and tools that quietly creep into workflows.

• Their platform protects everything from user access to prompt injections and LLM hallucinations.

• AI-specific red teaming tools simulate attacks and help companies patch gaps fast.

• Governance tools ensure compliance and safe usage not just in theory, but in real time.

• Zscaler integrates with existing workflows, aiming to make AI security a built-in layer, not a bolt-on fix.

• Dozens of companies from airlines to banks already use it to monitor AI risk at scale.

AI is pushing enterprises into unfamiliar territory fast. And most companies are securing it with tools designed for a pre-AI world. Zscaler’s approach may feel heavy-handed now, but the idea of built-in AI security won’t seem optional for long. Better to be early than breached.

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