Coin World News Report:
AI-driven robots are on the rise in Silicon Valley. If some industry experts are correct, they can help address the global labor shortage. Companies like Tesla, Amazon, Microsoft, and Nvidia have invested billions of dollars into so-called “humanoid” robots. These machines typically stand on two legs and are designed to perform tasks meant for humans. Currently, they are being deployed in warehouses. But supporters say the potential goes far beyond fulfillment centers. These robots could eventually work alongside humans in homes and offices. Tesla CEO Elon Musk has been one of the main advocates. The electric car manufacturer is placing its bets on its Optimus robot, which Musk believes “will change the world to a greater degree than cars.” During the company’s Q1 earnings conference call, Musk stated that Optimus could drive Tesla’s market cap to $25 trillion, which would be “most of Tesla’s long-term value.” Amazon supports Agility Robotics and has deployed its Digit robot in fulfillment centers. According to an analysis by Goldman Sachs, the market for humanoid robots will expand to $38 billion in the next 20 years. The company predicts that these robots will become the next “must-have” device, similar to smartphones or electric cars. Goldman Sachs also states that humanoid robots may be “crucial for manufacturing and dangerous jobs, but they also help with elderly care and filling labor shortages in factories.”
AI Enhancements
These humanoid robots have been around for decades. But with recent advancements in artificial intelligence, the industry is experiencing renewed optimism. The same technology behind OpenAI’s ChatGPT allows robots to understand language and commands, and decide how to act. These machines use computer vision and are trained in the real world, just like humans. Henrik Christensen, a professor of computer science and engineering at the University of California, San Diego, told CNBC, “Robots are where artificial intelligence meets reality… It’s creating some very interesting new combinations that I don’t think we could have imagined even five years ago.” The global labor shortage is another key factor driving interest in humanoid robots. According to data from the U.S. Chamber of Commerce, there are approximately 8.5 million job openings in the United States alone. This gap is particularly severe in the manufacturing industry, with Goldman Sachs estimating a shortage of 500,000 workers, which is projected to increase to 2 million by 2030. Supporters argue that robots are filling monotonous and dangerous jobs. Jeff Cardenas, CEO and co-founder of robot startup Apptronic, said, “We’re starting to do the boring, dirty, dangerous tasks that are severely lacking in our labor force today, that we don’t have people to do.” The competition is global. According to the Stanford University AI Index Report, China has taken the lead in the industry, surpassing Japan in 2013 as the world’s largest industrial robot installation country, currently accounting for over half of the global total. “The Chinese market is the largest in the world,” said Tom Andersson, Chief Analyst at Styleintelligence. He added that the only Western company with a product similar to those produced in China is Amazon. “But Chinese companies are quickly catching up.” Despite this, there are still obstacles. These machines are expensive, and there are safety concerns about allowing robots to have free rein in factories. “When it comes to mass adoption or even something that looks like mass adoption, I think we’re looking at several years. Probably at least a decade,” said Andersson. “Sorry, Musk.” Watch the entire video to learn more about the rise of humanoid robots.