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.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.