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Insight

# Commercialization Gaps in Embodied AI

Embodied AI is the next platform shift. But the companies building it face a unique challenge: the market doesn't yet have categories for what they do.

By Shannon Smith, J.D., M.S. Published March 1, 2025

## The Category Problem

Embodied AI companies face a challenge that software companies don't: the market has no existing category for what they do. When a buyer can't categorize a product, they can't evaluate it. When they can't evaluate it, they default to inaction.

This is a category problem, and category problems require strategic positioning.

## Buyer Education vs. Buyer Confusion

Most embodied AI companies respond to the category gap by trying to educate buyers. Education is necessary but insufficient. The goal is to make the buyer understand the business outcome.

The companies that scale are the ones that frame their product in terms of problems the buyer already recognizes, even if the solution is entirely novel.

## Building Commercial Infrastructure for a New Paradigm

Embodied AI requires commercial infrastructure that doesn't yet exist: new buying criteria, new ROI models, new deployment narratives, and new category frameworks. The companies that build this infrastructure first will define the market. The rest will compete within categories someone else created.

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