Physical AI is poised to dramatically transform Italian robotics. According to data from the Innovative Robotics Observatory at the Polytechnic University of Milan, 28% of Italian enterprises presently use robotic solutions (mainly in manufacturing), representing a €3.5 billion industry. However, the emphasis is on the future: adoption is predicted to increase to 36% by 2028, and 29% of enterprises investing in 2026 will focus on new robots that can integrate artificial intelligence, sensors, and continuous learning. Globally, the sector is thriving, with 493 new firms founded since 2020, largely in North America and Asia. Italy is defending its leadership with ten startups having raised more than $120 million. In Italy, traditional industrial robotics still account for 82% of the installed base, but the next three years will see a surge in collaborative solutions (cobots), autonomous mobile robots (AMRs), and humanoids, rising from 3% today to 11% in 2028. Robots will transition from manufacturing to personal care, surveillance, and quality control. The necessity to address labor decrease due to demographic aging is driving investments, particularly in humanoids. However, high expenses and a fragmented legal and regulatory framework continue to impede progress, posing an impossible challenge for 51% of businesses.