Ranging from automation systems and robots to smart grids and electronically coupled vehicle convoys, cyber-physical systems are the result of bringing together two worlds: the physical and the digital. Such a marriage poses a variety of challenges in terms of managing the complexity of the often large numbers of inter-connected devices and services, as well as understanding and solving the emerging technological and IT governance issues. These and other aspects have motivated this panel, aimed at discussing the underlying problems, benefits and risks associated with the distributed intelligence of cyber-physical systems.