AI, Hardware, and the Future of Physical Innovation
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Amish Patel
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At the intersection of atoms and bits lies a growing frontier—and one venture studio is laser-focused on it. They aim to apply AI, sensory technologies, robotics, and advanced metrology to the physical world, tackling challenges across manufacturing, energy, human performance, medical devices, and industrial systems. They’re not just incubating ideas—they're helping startups scale, bridging the treacherous “commercialization valley of death” that so often claims hardware-based ventures.
The reality is, most innovation ecosystems aren't built for hardware. While software has enjoyed decades of iteration and support, the physical side—design, engineering, manufacturing—remains high-risk and under-supported. This studio’s platform is about de-risking that process, empowering the next generation of entrepreneurs to navigate the most failure-prone part of building physical products.
AI is now reshaping that landscape. From CAD to DFM (Design for Manufacturability), hardware engineering tools have long stagnated. Legacy platforms like SolidWorks and Rhino dominate and are resistant to change in part due to entrenched workflows and highly structured supply chains. But that’s starting to shift. Cloud-based platforms, like Onshape, are early signals of what’s coming.
And AI? It’s the accelerant.
"Just as AI copilots now assist software developers, similar tools are beginning to emerge for mechanical, electrical, and industrial design. They compress timelines, reduce errors, and democratize access to specialized knowledge once guarded by senior engineers."
Just as AI copilots now assist software developers, similar tools are beginning to emerge for mechanical, electrical, and industrial design. They compress timelines, reduce errors, and democratize access to specialized knowledge once guarded by senior engineers. AI won't just speed up design cycles—it’ll allow younger, less experienced engineers to build with a level of confidence and efficiency previously reserved for seasoned veterans.
AI doesn’t just make things faster—it enables more iterations, better simulations, and deeper compliance checks.
Whether it’s recommending wall thickness for regulatory compliance or simulating structural stress in real-time, AI acts as both a creative partner and a guardrail. The tools can now simulate extreme scenarios—from natural disasters to wear-and-tear —compressing months of validation into hours.
This isn’t theoretical. The future of product development is already being prototyped in systems like NVIDIA’s Omniverse or Autodesk Alias. Digital twins, advanced simulation environments, and generative AI are ushering in an era where the first version isn’t final—it’s just the beginning of a rapid evolution from prototype to scale.
And yes, AI is democratizing product design. The apprenticeship model of hardware—where skills are passed down from principals to interns—is giving way to something more accessible. AI tools now make it possible for a 25-year-old with no formal CAD training to explore medtech prototypes or embedded systems with nothing more than a prompt and curiosity. Knowledge, once siloed in agencies or engineering teams, is becoming increasingly distributed.
"And yes, AI is democratizing product design. The apprenticeship model of hardware—where skills are passed down from principals to interns—is giving way to something more accessible. "
But trust is essential.
Unlike the freewheeling world of pure software, the physical industries already operate within mature regulatory frameworks—UL, FDA, IEC. These systems are now evolving to address AI’s growing role in product development. While software may race ahead without oversight, the physical world demands accountability. When AI designs a bridge, we need to know who’s liable. Who checks the model? Who signs off? These are active conversations, and forward-thinking leaders are already working with global standards bodies to define what certification in an AI-driven world should look like.
So, hardware isn't the new salt—it has always been essential. Software can only go as far as the hardware it runs on. The cycle is inseparable: advances in materials and manufacturing enable new software capabilities, which in turn spark new hardware innovations. AI is simply accelerating this feedback loop.
The ultimate impact of AI may not be felt in the digital realm at all—it will be in how it transforms the 70% of global GDP rooted in physical tasks and industries. From healthcare to energy to infrastructure, the convergence of AI and hardware is not a trend. It’s the next foundation.
Amish Patel
Founder, Managing Director at Conduit Venture Labs
