Humanoid robots are increasingly being tested in warehousing and logistics facilities around the world, most notably by retail titan Amazon, but will they be a common sight in the future?
Ash Sharma is the managing director of Interact Analysis and lead for the Robotics and Warehouse Automation Division. He brings 20 years of experience to the table in sectors ranging from industrial automation and smart manufacturing to drones, robotics, and medical technology.
Last October’s announcement by online retail behemoth Amazon that it is testing Agility Robotics’ humanoid robot, Digit, in its warehouses caused a stir in the global media, sparking numerous news articles and debate about the ethics of using robots to replace human workers. But does Amazon’s announcement point to a rapid adoption of bipedal robots in the near future?
The concept of humanoid robots is not new. In fact they date back at least as far as Ancient Greece, with the mechanical Servant of Philon1, a humanoid automaton that could pour and mix wine and water. However, there has been a sharp rise in recent years in the number of companies developing and trialing humanoid robots, particularly within the warehouse sector. Digit, which can grasp and lift objects, is going to start by moving empty tote boxes as part of Amazon’s efforts to automate its warehouse operations. Similarly, Figure and Boston Dynamicsare prototyping humanoid robots for use in distribution centers. Tesla’s Optimus Robot also looks promising for warehouse applications, as it can self-calibrate its arms and legs and has the capability to sort objects fully autonomously. Additionally, the commercial launch of Apollo by tech startup Apptronik is expected to take place in late 2024, and videos have already shown it walking, case picking, palletizing, and unloading trailers.
Yet, in spite of the current chatter around the technology and the flurry of pilots and prototypes, change is unlikely to happen overnight. Most pilot projects take months or even years to reach completion, and rollouts tend to happen in incremental stages. Furthermore, our feeling is that, although we are already starting to see humanoid robots appear in warehouses, some obstacles still exist, particularly in regard to acceptance of humanoid robots by their human co-workers.
Are bipedal robots inevitable?
Warehouse automation solutions in general have been in place for decades, carrying out many physically demanding, menial jobs. For example, automated storage and retrieval systems (AS/RS) are already widely used alongside human workers to deliver much faster rates of order picking and to increase throughput. Furthermore, over the past five years, there has been a steady rise in the development and adoption of mobile automation solutions for the warehouse, such as automated guided vehicles (AGVs) and autonomous mobile robots (AMRs).
This surge in demand has been in part fueled by the ongoing labor and skills shortages blighting the industry. Research by Interact Analysis shows scarcity of labor remains the biggest driver of demand for mobile robots and the impact of shortages is becoming more acute. As a result of this and other drivers for mobile automation (such as increasing labor costs, e-commerce growth, and the shift to flexible manufacturing), Interact Analysis forecasts shipments of mobile robots will continue growing at an annual rate of approximately 50% until 2027.2 (See Figure 1.)
Similar to AMRs and AS/RS, humanoid robots may simply be another evolutionary stage in the development of technology for the industry. Because of their ability to move and interact with their environment in a similar way to an actual person, humanoid robots have the potential to meet some very specific needs of the modern warehouse while also offering a very different value proposition to traditional robots. Warehousing involves repetitive and physically demanding menial work that often has seasonal peaks in demand. This work often involves interacting with a variety of different products that lack standardization and a uniform shape and size. While traditional robots are very good at doing the same repetitive work over and over again, humanoid robots can be more adaptable (in a similar way to humans) and therefore can be applied to multiple different tasks throughout a warehouse.
Early applications for bipedal robots are likely to include trailer unloading, which is simple, physically demanding, and repetitive, but difficult to complete using traditional robots. While they tend to operate at a slower pace than traditional robots, humanoid robots also offer the potential to be introduced to the workforce during peak periods without requiring substantial operational changes to warehouse workflows or alterations to the layout of the warehouse. In this way, humanoid robots offer greater flexibility than other materials handling solutions, as they can be dropped into existing supply chains alongside human workers. Humanoid robots are able to take on jobs that are unappealing and take a toll on the human body (such as trailer loading/unloading), freeing up employees for more complex, less physically demanding, and more interesting tasks. Additionally, unlike traditional robots, humanoid robots possess a level of mobility and dexterity that allows them to take on multiple different tasks across facilities, workflows, and applications, and to handle the variety of objects found in a typical warehouse.
Given these potential benefits, will humanoid robots see the same sort of growth rate as AMRs and other robotics solutions? That depends on how well they are able to overcome the barriers to adoption. The largest barrier is the high cost of humanoid robots, which means businesses will currently have to wait a long time to achieve a return on their investment. However, another significant barrier is the “uncanny valley” effect, or the feeling of unease or revulsion people feel when they encounter a human-like robot, and the personification of role replacement humanoid robots represent.
Is our unease surmountable?
At the time of Amazon’s announcement, concerns were raised about humanoid robots displacing human workers.3 Similar concerns have been raised in the past about other robotic technology, such as AMRs. But anecdotal evidence indicates people like working alongside AMRs, where the robot carries out menial, physically demanding work, while they act in a supervisory capacity.
However, the very reasons humanoid robots are capable of working so well alongside human workers are also one of the biggest stumbling blocks for their rapid and widespread adoption: their ability to move and function similarly to a human. From the automaton in ETA Hoffman’s nihilistic 1815 short story “The Sandman” to movies and TV shows such as Terminator, Avengers: Age of Ultron, Blade Runner, and Westworld, humanoid robots have been depicted as problematic and, in some cases, apocalyptically so. Coupled with this, humanoid robots appear to cause greater resentment than other forms of autonomous mobile robots because they are role replacement personified. After all, few humans want to be outpaced, outlifted, and outperformed by a robot that looks like a person.
Responding to concerns about job losses, Amazon has emphasized the “hundreds of thousands of new jobs” that have been created as a result of its use of robotic systems, including “700 categories of new job types in skilled roles,” with robots being used to replace the most “menial, mundane, and repetitive” tasks.
Ultimately, companies are unlikely to be deterred from deploying humanoid robots by their appearance. Although Digit walks on two legs and is capable of lifting and moving objects with its arms, we are far from a dystopic future in which sentient robots blend seamlessly into the human population. The bipedal robot has been designed specifically for warehouse automation where the focus is on increasing throughput and filling labor gaps, rather than the complexities of human thought and movement. Indeed, Amazon describes Digit as “a mobile manipulator solution,” and Tye Brady, chief technologist at Amazon Robotics, told reporters in Seattle that people are “irreplaceable” to the company because of their “ability to think at a higher level, the ability to diagnose problems.”
Promising but still some way off
At Interact Analysis, we have charted the steep rise in demand for warehouse automation technology. Many facilities are still operating manually, but companies worldwide plan to increase investment in automation over the coming years. Skills and labor shortages are showing no signs of stopping within the materials handling industry, and mobile robots are being utilized already in a range of different settings. They often provide a solution to repetitive, physically demanding, uncomfortable, and dangerous jobs.
In addition to this, our research indicates the scalability and flexibility to use humanoid robots within existing warehouse operations alongside human workers could provide a unique answer to ongoing skills and labor gaps. There will always be inertia to change regardless of what the automation solution looks like, and it is too early to tell whether in the long-term bipedal robots will become widely used in warehouses. However, it is certainly a possibility. It will be dependent on the success of early pilots, whether ethical concerns can be overcome, and whether other robotics technology is found to be better suited to specific tasks. Amazon has always been a leader in its use of robotics, with the rest of the industry tending to follow (or fail!), so this pilot could be the catalyst for the wider rollout of humanoid robots in the future. Although competition to develop affordable and effective models is growing, the widespread use of humanoid robots in warehousing, if it happens, is clearly some way off.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use artificial intelligence-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next one to three years. Retailers also said they plan to invest in self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) within the next three years to help with loss prevention.
Those strategies could help improve the brick-and-mortar shopping experience, as 78% of shoppers say it’s annoying when products are locked up or secured within cases. Part of that frustration, according to consumers, is fueled by the extra time it takes to find an associate to them unlock those cases. Seventy percent of consumers say they have trouble finding sales associates to help them during in-store shopping. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
Additional areas of frustrations identified by retailers and associates include:
The difficulty of implementing "click and collect" or in-story returns, despite high shopper demand for them;
The struggle to confirm current inventory and pricing;
Lingering labor shortages; and
Increasing loss incidents.
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”