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Technology
27 February 2025

Humanoid Robots Threaten 800 Million Jobs Globally

Rapid automation and AI advancements are set to reshape the workforce within the next few years.

By 2025, approximately 800 million workers could find themselves displaced due to the rise of robots, particularly humanoid robots, capable of performing tasks traditionally done by humans. This alarming statistic highlights the accelerating trend of automation across various industries such as e-commerce, manufacturing, and agriculture.

At the heart of this robotic evolution is the Digit robot, developed by Agility Robotics. Currently operational at manufacturing facilities like Spanx’s distribution center in Flowery Branch, Georgia, these humanoid robots are seen as key players for automizing labor-intensive tasks. "Digit is replacing human labor as companies push toward greater automation," remarks Adrian Stoch, the automation director at GXO Logistics. These robots can perform various functions, showcasing flexibility previously not seen in traditional automation technologies.

The global demand for such robots has significantly surged, coupled with the declining costs of components as large-scale manufacturing becomes the norm. Companies are now using sophisticated AI to animate robots like Digit, transforming them from mere machines to versatile workers capable of adapting to business needs. This evolution isn't just speculative—it’s observable. Experts estimate about 30% of the workforce will require reskilling by the year 2030 due to this technological shift, according to reports from the McKinsey Global Institute.

Automation has been heralded for its efficiency; Digit, for example, can perform multiple tasks within the same day, from unloading trucks to sorting goods. “We could let Digit unload trucks in the morning, pick up items in the afternoon, and load them up for delivery at night,” said Stoch, illustrating the potential for enhanced productivity. The economic aspect will play a pivotal role too—as robots become more cost-effective, their widespread adoption becomes inevitable.

Interestingly, companies like Nvidia and OpenAI are also exploring the development of powerful AI systems, which serve as the brains behind these robots. Rev Lebaredian of Nvidia notes, “The technology enabling automated robots aligns with everything we’re doing with AI and large language models.” This synergy between AI and robotics signals the dawn of more autonomous machines capable of performing complex tasks with less human oversight.

Interestingly, some tech executives believe the imminent progress of AI is the precursor to the next phase for robotic development. Jensen Huang, CEO of Nvidia, claims, “The time for ChatGPT for robots is almost here.” This reflects anticipation around a future where robots, bolstered by AI advancements, will not only supplement but potentially replace human jobs on assembly lines and warehouses.

While the rise of robots like Digit signifies progress, the human adaptive response remains equally significant. Companies must prepare their workforce to embrace new roles. A recent World Economic Forum survey revealed four out of five executives are fast-tracking digitalization and adopting new technologies, propelled by the pandemic's push for innovation. By addressing skills gaps, businesses can help mitigate the impact of workforce displacement, enabling current employees to transition toward new functions.

Nevertheless, the challenges associated with deploying humanoid robots are non-trivial. For example, companies still face technical hurdles, including limited functionalities of current robots. Sally Miller, global chief information officer of DHL Supply Chain, emphasizes, “While humanoid robots represent the ultimate goal of technological progress, they are not yet ready for warehouses.” This indicates the need for more development before robots can replace humans entirely.

A major concern revolves around robots' potential biases, since their algorithms can reflect the prejudiced data used during development, leading to unethical behaviors. Such drawbacks highlight the necessity for responsible programming and oversight going forward. Addressing these biases is not just about enhancing robot efficacy; it’s integral to ensuring fair treatment of workers.

Advocates argue the development of robots is primarily beneficial. “This is why solutions like Digit are being hailed as ideal because they do not make unexcused absences and can work for extended hours,” noted one employee. Robotic solutions may replace tedious, monotonous tasks but can empower workers to focus on more meaningful work, allowing for increased job satisfaction.

Many experts warn, though, of job displacement consequences across the globe. A future where automation is seamless will require both policymakers and economies to address structural shifts prompted by technology. While jobs will inevitably be lost, there lies the potential for job transformation, paving the way for more innovative industries to emerge.

Strong collaborative efforts will be needed from the government, educational institutions, and businesses to build the necessary infrastructure for re-training workers. According to the World Economic Forum, nearly half the global workforce may need new skills over the next five years to stay relevant, leading to proactive initiatives to address this transition.

Moving forward, creating adaptable training and skill-enhancement programs will be indispensable to help workers grapple with the shifts caused by advancements like Digit. Developing these capabilities lies at the heart of sustaining employment as robots continue to proliferate across various sectors.

Conclusively, as governments and enterprises prepare for this challenge, the successful transition will depend on effectively managing the collective human and technological partnership, minimizing disruptions to labor markets, and embracing the positive transformations robotics promises to bring.