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First-Principles AI, also known as physics-informed AI, integrates scientific principles and physical laws into AI models, unlike traditional data-driven approaches. This improves accuracy, reliability, and interpretability, particularly valuable in fields with strict constraints like engineering and healthcare. While offering significant advantages in efficiency and innovation, challenges include interdisciplinary collaboration needs and substantial computational requirements. Several companies are developing tools to support its adoption, paving the way for transformative advancements across numerous industries. Ultimately, this approach promises more robust and trustworthy AI systems.