City: Henrik Christensen, PhD
Qualcomm President Distinguished Professor of Robotic Systems Department of Computer Engineering Department of Computer Engineering, UC San DiegoROBO Global Strategy Advisor
For over 30 years I have been working in the field of robotics and automation, closely observing the changes and, perhaps most interestingly, the public perception of technology.
Not long ago, the public paid little attention to what might happen next. Despite the exponential growth taking place, discussions around robotics, automation, and AI have seemed largely academic. That was…until a global pandemic changed things.
Like flipping a switch, our world has been challenged and our cultural norms transformed. The workforce was centered both physically and mentally. Our consumer demands have been challenged. Weaknesses in the supply chain were exposed. Meanwhile, technological advancements have continued to progress, many of which we are just beginning to witness. We live in truly fascinating times.
These social drivers are changing the way we work, live and play. It also impacts how we invest as businesses and (hopefully!) as individuals. Let’s take a closer look at the factors driving the demand and adoption of automation in different aspects of our lives.
1. Labor shortage
The residual effects of COVID-19 and the need to stay at home have created a labor crisis that there is no evidence to fix. Unlike the 2008 recession, we are experiencing a labor shortage, not a job shortage. This is particularly prevalent in manufacturing and logistics, where the number of unfilled roles far exceeds unemployment.
What do you do when there is no one else to take on the role? We need to add more automation. Now, both large and small businesses are investing more than ever in technology to bridge the gap. This decision is not a choice, but a necessity to survive in a fiercely competitive environment.
One of the most important things we can do to achieve sustainable economic growth is to promote education in fields such as manufacturing and logistics. Surprisingly, many of the paths to success and career advancement do not require a college degree. These are STEM roles that can be earned through trade school or certification programs, significantly lowering the barrier to entry. These new positions leverage our unique human management skills as we supervise robots that perform tedious, dirty and dangerous tasks.
As a professor, I see many of my students preoccupied with the current job market and fear of technical layoffs. We have talent. Now we just need to help them pursue the new roles created by demand. But this is not just a message for retraining college-educated students. It’s also a tremendous career opportunity for people of all ages looking to develop new skills or enter a new field. In the meantime, we will continue to see companies investing in technology to fill millions of unfilled jobs.
2. Massive increase in e-commerce
COVID-19 has shown what big companies can do when faced with a surge in online delivery. Today we came to expect a package to arrive at our doorstep just two hours after clicking “buy.” Demand for e-commerce and rapid delivery has skyrocketed since the start of the pandemic with no signs of slowing down, creating interesting challenges for fulfillment.
Companies large and small don’t just want to get in on the action – they need to. We expect to see more and more automation in fulfillment, whether in the back room, out front, or in the middle of the grocery aisle. As companies continue to compete, localized delivery will also gain momentum.
With solutions ranging from traditional automated storage to automated packaging to mobile platforms that roam the field, we’ll see even relatively small businesses get in on the game.
Much of this automation has been made possible by robotics companies, which offer more flexible deployments on a smaller scale in terms of the minimum number of systems required. These options can also be provided at a reasonable cost, with a user interface that is easy for existing employees to learn.
Unlike the fixed, bulky, and expensive infrastructure of the past, business owners don’t have to worry too much about making the wrong choice when it comes to automation. Now they can use the technology best suited to their job without having to purchase a specific ecosystem.
The need for rapid implementation and job creation associated with today’s logistics automation makes investment in technology imperative.
3. Mainstream yet untapped applications of generative AI
Recently, almost everyone around the world has witnessed the amazing capabilities of generative AI in some shape or form, whether they are aware of it or not. From the storm of AI portraits that have taken Instagram feeds by storm, to the mainstream use of ChatGPT for simple content tasks, to this year’s Sony “Photo of the Year”. Yes, the author revealed that the photo was actually generated by AI. To say we have only scratched the surface of what generative AI can do would be an understatement.
We are only just beginning to see the reach of this powerful technology and the role it will play in our lives. So far we have focused on information generation. As generative AI becomes more widely adopted, we will focus on verifying information. We had to sit down and write a story. Now you can ask the generative AI:
One of the biggest hesitations we are currently seeing concerns the reliability and factual nature of the material. Can we believe it? How do you know it’s not a lie? This is where information verification begins and remains a critical piece of the puzzle. Another big challenge is plagiarism. How can I be sure that my student’s work is original? How do I deal with duplication of a singer’s voice? Although this technology may present many potential obstacles, the possibilities are endless. Generative AI will really change the way we operate at a fundamental level.
Invest in automation
These are just three factors that will lead us to a more automated world. In my eyes, there is no doubt that this adoption will result in significant growth in all segments of the market. The question is how to make the right bets. The ROBO Index (Robotics and Automation) and the THNQ Index (AI) allow investors to gain diverse exposure to both developers and users of these amazing technologies. In the end, these technological and social changes are just the beginning of how the world is changing to adapt to new user needs, and how we use technology to meet those needs.
