Huntington Ingalls Industries (HII), the largest shipbuilder in the United States, is betting that “physical AI” can solve a crisis of precision and personnel that has long dogged the American maritime industrial base. On Monday, April 6, HII and California-based GrayMatter Robotics signed a memorandum of understanding to integrate autonomous robotic systems into the shipyards, aiming to automate some of the most grueling and labor-intensive stages of vessel construction.
The partnership arrives at a critical juncture for the U.S. Navy’s production timelines. While HII has utilized traditional automation for years, those systems have largely been limited to repeatable, predictable tasks. The new initiative seeks to move beyond those limits by applying “physical AI”—artificial intelligence embedded in machines that interact directly with the physical world—to the complex, non-linear environment of a shipyard.
The Brutality of Precision
Shipbuilding is an industry of contradictions: it requires massive scale and immense strength, yet demands microscopic precision. Much of that precision currently relies on human hands performing “physically brutal” tasks—sanding, grinding, coating, blasting, and finishing metal structures. These are the roles where the industry is feeling the most acute pain.
“We don’t have enough skilled people anymore in the US who are capable of doing these jobs,” Ariyan Kabir, CEO and co-founder of GrayMatter Robotics, noted. By deploying GrayMatter’s “Factory Superintelligence AI,” HII hopes to offload these high-strain tasks to robots that can maintain precision without the physical toll or the scarcity of specialized human labor.
Beyond Repeatable Tasks
For Eric Chewning, HII’s executive vice president of maritime systems and corporate strategy, the move is about breaking a ceiling. He acknowledged that traditional automation had been taken as far as it could go in the production of Navy ships, where the scale and complexity of the vessels often render standard robotic programming ineffective.
The collaboration will focus on four primary pillars: the development of autonomous shipbuilding capabilities, the integration of GrayMatter’s specific AI technologies, comprehensive workforce training, and the expansion of uncrewed system production. This suggests a shift in philosophy—treating the shipyard not as a static assembly line, but as a dynamic environment where AI can adapt to the unique geometry of every hull.
The coming year is being designated as the “year of demonstrations.” HII and GrayMatter will spend the next twelve months piloting the technology and testing how these systems perform in active shipbuilding environments before attempting to scale the tech for full-scale production.
A Multi-Pronged Industrial Revitalization
Automation is not a silver bullet for HII; This proves one part of a broader effort to revitalize U.S. Shipbuilding. The company is simultaneously pursuing a strategy of “industrial revitalization” that includes partnering with more than 20 smaller shipyards and manufacturing centers to strengthen the supply chain. Recognizing that technology cannot entirely replace human expertise, HII has also been increasing wages to attract workers from vocational and apprenticeship schools.
How will this change the shipyards?
What exactly is “physical AI” in this context? Unlike generative AI or software-based systems, physical AI refers to intelligence integrated into robotic hardware. In HII’s shipyards, this means robots that can “see” and “perceive” the metal they are working on, allowing them to perform tasks like grinding or coating on complex surfaces that aren’t perfectly uniform.
Which specific jobs are being targeted for automation?
The partnership is targeting “physically brutal” metalwork, specifically sanding, grinding, coating, blasting, inspecting, and finishing metal structures. These are tasks that require high precision but are often hazardous or exhausting for human workers.

Will this replace the shipbuilding workforce?
The current framing suggests a gap-fill rather than a replacement. HII is facing a shortage of skilled labor and is simultaneously raising wages and investing in workforce training. The goal appears to be removing the most grueling tasks from the human workload to increase overall production speed and scale.
What is the immediate timeline for implementation?
The immediate phase is the “year of demonstrations.” Throughout 2026, the two companies will pilot the technology and test integration within the shipyard environment. Full-scale production scaling will only be considered after these demonstrations are successful.
Can the integration of physical AI move fast enough to keep pace with the growing demand for the U.S. Navy’s fleet?



