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As the technological landscape continues to evolve, tech companies and investors are pouring billions into the development of humanoid robots intended to collaborate with humans across various sectors, including warehouses, hospitals, restaurants, and even domestic environments. The ambition behind these humanoid robots is to address persistent labor shortages that plague multiple industries while also performing tasks that may pose risks to human workers.

While the prospect of having a robot assist with household chores may be enticing, the reality is that humanoid robots frequently make their debut in more structured environments, such as factories and warehouses. According to Benjamin Lawrence, a senior lead analyst at CB Insights, this trend is largely due to the predictable nature of tasks within these settings.

A lot of factories and warehouses share similar operational procedures, allowing for the establishment of replicable tasks, said Lawrence in a recent interview with Business Insider.

In contrast, the home environment presents a myriad of challenges. Ensuring safety around vulnerable individuals, such as the elderly or children, as well as managing interactions with pets, adds layers of complexity. A humanoid robot must navigate everyday hazards, from avoiding stepping on a dogs tail to recognizing objects like lit candles that could potentially lead to fires.

Despite the enthusiasm surrounding humanoid robots, skepticism exists regarding their widespread adoption. The manufacturing of these sophisticated machines is both expensive and technically complicated. Many robots remain largely untested outside of a few high-profile trials, raising questions about their practicality and effectiveness in everyday environments.

Nevertheless, investor interest in this sector is surging. According to CB Insights, companies focused on humanoid robotics have collectively amassed a remarkable $1.2 billion in venture funding in 2024 alone. This figure is poised to double to an impressive $3 billion by the end of the year. Agility Robotics recently announced a $400 million funding round, achieving a valuation of $1.75 billion. Additionally, Apptronik, known for its Apollo humanoid robot, secured a $350 million Series A funding round earlier this year.

Major tech firms are also investing heavily in the humanoid robotics space. Some companies, such as Google DeepMind, are providing foundational models to robotics manufacturers like Apptronik. Others, including Tesla, are developing both the hardware and software for humanoids, with CEO Elon Musk stating that Tesla plans to produce genuinely useful humanoid robots for internal use this year, with an anticipated retail price of $20,000 to $30,000 by 2026.

The automotive industry has been among the earliest adopters of humanoid robots, thanks to the existing levels of automation already present in car manufacturing plants. Lawrence noted that the transition to humanoid robots is a logical next step in automating these environments.

Ford was Agility's first customer, purchasing two Digit robots in 2020. The collaboration followed a successful partnership focused on last-mile delivery solutions. Notably, BMW has undertaken pilot projects using humanoid robots from Figure to assist with inserting sheet metal parts into car chassis. Meanwhile, Hyundai made headlines by acquiring Boston Dynamics, a key player in humanoid robotics, from Softbank for a staggering $1.1 billion in 2021.

Retail giants are also experimenting with humanoid technology in their warehouses. Amazon is currently testing Digit, produced by Agility, alongside its in-house robotic solutions. Logistics leader GXO has employed Digit and humanoids from both Apptronik and Reflex Robotics in its operations.

We are pursuing a broad and aggressive approach to humanoid technology, said Adrian Stoch, GXO's Chief Automation Officer, in a recent interview with Business Insider. This strategy aligns with our vision for the future.

While the prospect of humanoid robots in everyday workspaces seems promising, the timeline for widespread implementation remains uncertain. There are noteworthy challenges, including the steep price, with individual humanoid robots costing tens of thousands of dollars. However, some Chinese manufacturers, such as Unitree, have recently introduced models at significantly lower price points.

Technological hurdles also pose challenges. Lawrence asserts that creating humanoids adept at adapting to diverse warehouse environments, responding to a variety of language commands, and understanding context is a formidable task. The complexity of achieving this level of adaptability is immense, he explained.

Current tests are limited in scope; for instance, despite GXO operating over 1,000 warehouses and employing upwards of 150,000 people, only two Digit units are currently active, transporting heavy boxes in a single facility. Were not at the stage of widespread deployment or commercial viability just yet, but were definitely not looking at a decade away, Stoch remarked.

Another significant consideration is whether humanoids, designed to walk and manipulate objects like humans, are genuinely the best solution for various tasks. Many tasks in warehouses are already being efficiently handled by robotic arms and automated guided vehicles (AGVs) that perform predefined transport routes. Additionally, autonomous mobile robots (AMRs) operate independently, and Boston Dynamics has developed innovative robotic dogs capable of performing functions like meter readings and leak detection.

As Forrester analyst Paul Miller pointed out, There are very few scenarios where the optimal robotic form is one that merely resembles a human. He emphasized that the complexity of human tasks often necessitates a combination of technologies rather than relying solely on humanoid robots. A human worker typically engages in various activities, some of which are best served by software, others by physical automation, and some may indeed require human touch, Miller concluded. The focus should be on determining how to effectively divide these tasks among various technologies.