Why AI Is Still Blind to the Physical World and How Flexible Chips Could Change Everything

What if the biggest limitation holding AI back isn’t the model, the data center, or the algorithm, but the fact that most physical objects in the world still cannot communicate digitally?

In this episode of Tech Talks Daily, I sat down with Richard Price, CTO and co-founder of Pragmatic Semiconductor, to explore why AI systems remain “half blind” to the physical world and what happens when everyday objects finally become intelligent, connected, and verifiable data sources.

Richard shared how Pragmatic Semiconductor is taking a radically different approach to chip design by creating flexible, ultra-thin semiconductors built specifically for item-level intelligence. Rather than competing directly with traditional silicon, Pragmatic is designing lightweight, low-cost electronics that can integrate directly into packaging, labels, healthcare patches, wearable devices, and products that conventional chips cannot support economically or physically.

During our conversation, we unpacked why the long-promised “Internet of Everything” has remained frustratingly out of reach for so many years. Richard explained that while silicon has powered decades of incredible innovation, scaling connectivity to billions or even trillions of everyday objects introduces major cost, energy, and sustainability challenges. Pragmatic’s flexible semiconductor technology aims to solve that by reducing manufacturing complexity, lowering environmental impact, and enabling intelligence directly at the edge.

We also discussed how embedding intelligence at the item level could reshape supply chains, sustainability initiatives, healthcare systems, and even consumer trust. From reducing food waste through smarter logistics to enabling wearable healthcare sensors with entirely new form factors, Richard painted a picture of a future where physical products can actively communicate their identity, condition, and history in real time.

One of the most fascinating parts of the conversation centered on how businesses should prepare for this shift. As edge intelligence grows, organizations may need to rethink traditional cloud-heavy architectures and start designing systems in which decisions occur closer to the object itself. Richard explained how this could reduce latency, lower energy usage, and unlock entirely new categories of connected products.

We also explored the sustainability side of semiconductor manufacturing at a time when AI infrastructure and hyperscale data centers are drawing increasing scrutiny for their energy and environmental impact. Richard shared how Pragmatic’s thin-film manufacturing approach uses fewer chemicals, less water, and lower-temperature processes, while opening the door to more environmentally conscious digital infrastructure.

Toward the end of the episode, Richard offered insight into some of the most exciting real-world applications already emerging, including healthcare patches, wearable sensing technologies, AR and VR devices, and electronics that could eventually conform to the human body itself. It is the kind of conversation that makes you rethink what a semiconductor can actually be.

If you’ve ever wondered what comes after smartphones and smart devices, this episode offers a fascinating look at how flexible electronics could quietly become the foundation for the next generation of connected intelligence.

Useful Links

• Connect with Richard Price
• Learn More About Pragmatic Semiconductor

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