Six reasons why robotics should be on your boardroom agenda

With robotics set to go mainstream, Gareth Stokes says businesses should be planning for the next wave of technology-driven transformation. This article is part of our Algorithm to Advantage campaign.

Ask a senior exec what their top tech priority is right now, and the answer will almost certainly be adopting AI.

Generative AI is transforming businesses’ operating models, market propositions and workforces. Organisations are scrambling to embrace its powerful capabilities and understand the implications.

But before they’ve fully got to grips with gen AI, its convergence with another transformative technology – robotics – is set to change the game once again.

Beyond production lines in industrial manufacturing, robots on the frontline of business operations have – for the most part – been the stuff of science fiction.

That’s no longer the case. Within a few years, the combination of robotics and AI could have applications in almost every sector.

If your business isn’t considering the effects on your industry over the medium term, then it should be. Here are six reasons why.

1. The robotics revolution will be felt in every industry 

Humanoid robots, powered by AI, are on the verge of entering the workforce.

Combining motion, balance, fine motor skills and communicative abilities, they may soon be able to perform many of the complex physical tasks that people carry out every day.

As such, their potential use cases are myriad. From precision work in factories – they’re already being tested on automotive assembly lines – to picking and packing in warehouses. From care homes and clinical settings to catering, retail and customer service roles.

And with driverless vehicles – essentially robots on wheels – on the horizon, the impact on logistics will be significant.

2. The economic and investment cases are strong 

Employment costs – salaries, benefits, taxes – can mount up. The total cost of a full-time worker depends, of course, on the sector and role, but can easily sit at the upper end of the USD50,000-100,000 bracket. Across a large, multinational workforce, that’s a significant spend. 

For the time being, humanoid robots are expensive, costing around USD100,000-200,000 each. But as with all new technologies, the price will fall as production becomes standardised. 

We may expect the cost to fall to around the same as a family car, around USD50,000, amortised over the product’s lifespan. Plus, robots can work the equivalent of multiple human shifts. Their battery life already averages around 16 hours, a number that will only grow.

For many organisations, that will add up to a compelling economic case for adopting robotics to a greater or lesser degree. 

Meanwhile, the companies developing robots have a strong equity story for investors and are attracting significant amounts of funding.

The use cases are clear and abundant, and the profit equation is straightforward. Unlike with software offerings, profitability doesn’t depend on reaching a critical mass of users. 

3. Businesses must plan for the impact on their sector  

Your medium-term planning needs to account for how robotics will shape your industry, market and company dynamics. 

Failing to explore where your organisation could benefit from robotics could leave you behind the curve. Your strategy, your business, revenue and operating models, your market proposition and cost base all risk becoming uncompetitive. 

You’ll need to assess how humanoid robots will affect the value of your products and services. 

Will your customers expect to pay less if robots are producing them? Or will they want an element of human interaction or creativity in your proposition, and what are they willing to pay for that? 

Also consider the impact on your workforce. Where will robotics integrate into your operations? 

Gen AI has largely affected the information worker segment of the workforce. Robotics could well have a similarly seismic effect on those carrying out hands-on roles: retail and kitchen staff, couriers and drivers, care assistants, production line and warehouse workers, and many more.

4. Robotics will change the data privacy game 

Robots gather huge amounts of data. They can capture video, audio, location and biometric information as they go about their tasks and interact with people.

That has many potential advantages – for example, helping to maintain standards of care delivery in clinical facilities and care homes, or monitoring safety on public transport. 

But there are clear privacy implications. Some of these will be familiar ground. As with any data, you’ll need to be transparent about whose information you collect, why, and how you intend to retain it. 

Specific governance and guardrails for robotics use will be also necessary. You’ll need to make decisions about when to gather data. Should recording mode be always on, or triggered only by defined events? 

In public settings, clear signage and easily accessible explanations of your data-collection policies may be required. And your contracts with robotics vendors should lock down data ownership and security standards. 

5. A hybrid workforce offers unique advantages  

In many sectors, there are clear productivity, continuity and resilience and benefits to a workforce combining humans and robots. 

As noted, robots can work much longer shifts than people. And they won’t object to unsocial hours. That may allow companies – such as retail and restaurant chains – to stay open later or even move to 24/7. Humans might staff the day shifts, while robots take on more of the night work. 

Human oversight of robotics will further enhance continuity and resilience, with people employed to monitoring robots’ performance and intervene when faults happen. 

Of course, there are continuity risks as well as advantages. As with any technology, cyberattacks and outages are possible, as are product failures that prevent robots from working.

One mitigating strategy might be to procure robots from multiple vendors, so issues affecting one provider don’t take the entire fleet offline.

6. Embedding robots into operations raises the compliance bar

Inevitably, integrating a new technology into your operations brings new compliance obligations.

In Europe, the EU AI Act sets out provisions for high-risk AI systems, which can include those used in robots. The legislation demands thoroughly documented risk management, data governance and post-deployment monitoring.

That’s on top of the requirements imposed by the EU General Product Safety regulation, and other products’ specific safety regulations, including on cybersecurity aspects.

Adopting robotics will also mean meeting international safety standards, to protect customers and staff as they interact with robots, and to keep potential product liability issues under control.

For employees, training and clear operating procedures will be crucial when introducing robotics. Consultation with worker representatives may also be necessary.

And on the procurement front, your contracts with robotics vendors should clarify responsibility for safety validation, security updates and incident response – at the point of implementation and whenever there’s an update.

How we can help

The convergence of robotics and gen AI is set to transform the dynamics of organisations in every industry.

Businesses must start considering the impact now. For some, there’s a genuine risk of obsolescence by doing nothing.

DLA Piper can help you to understand the likely use cases in your sector; their implications and risks; and how to address them.

Through planning, procurement, deployment, governance, compliance and risk management, we can work with your team to ensure you’re ready for the robotics revolution.