Conventional wireless networks rely on instantaneous channel state information (CSI) and react to channel variations without explicitly modeling the physical environment, limiting their ability to handle blockage, mobility, and interference in dynamic deployments. Paradigms such as Integrated Sensing and Communication (ISAC) add sensing capabilities but lack explicit environment modeling and decision-making. In this article, we propose Physical-AI: a new architecture for environment-aware wireless networking, where radio signals enable sensing, modeling, and interaction with the environment in addition to data transmission. The framework proposes a self-supervised spatiotemporal radio foundation model for transforming distributed radio observations into a shared latent environmental representation. Multiple inference heads operate on this representation to estimate key environmental properties, including blockage, user distribution, mobility dynamics, and interference structure. A task-specific neural decision layer maps this representation to proactive, context-aware control actions. By integrating perception, world modeling, and decision-making in a closed loop, the proposed framework goes beyond ISAC and establishes Physical-AI as a promising architecture for intelligent 6G systems. Simulation results show that the proposed predictive framework reduces outage probability and blockage-response latency, particularly under increasing beam-switching delays.

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