Cutting edge detectors push sensing technology by further improving spatial and temporal resolution, increasing detector area and volume, and generally reducing backgrounds and noise. This has led to a explosion of more and more data being generated in next-generation experiments. Therefore, the need for nearsensor, at the data source, processing with more powerful algorithms is becoming increasingly important to more efficiently capture the right experimental data, reduce downstream system complexity, and enable faster and lower-power feedback loops. In this paper, we discuss the motivations and potential applications for on-detector AI. Furthermore, the unique requirements of particle physics can uniquely drive the development of novel AI hardware and design tools. We describe existing modern work for particle physics in this area. Finally, we outline a number of areas of opportunity where we can advance machine learning techniques, codesign workflows, and future microelectronics technologies which will accelerate design, performance, and implementations for next generation experiments.