Can AI-Powered Robots Bridge the Labor Shortage?
Labour scarcity, persistent demographic trends, and leaps in generative AI are combining to potentially speed up the deployment of humanoid robots designed to replicate human tasks.
Primary Insights
- Advances in generative AI and demographic-driven labour shortages could spur the evolution and implementation of sophisticated humanoid robots.
- Humanoid robots might be adopted more rapidly than autonomous vehicles due to easier engineering needs and wide-ranging applications.
- The U.S. might incorporate up to 50 million humanoid robots by 2040, affecting wages across various industries with an estimated $2.5 trillion economic shift.
- Sectors investing in humanoid technology and those adopting robotic automation could gain significant advantages.
Facing labour shortages driven by persistent demographic shifts, the U.S. is encountering risks to economic sustainability. Simultaneously, breakthroughs in large language models and generative AI are poised to revolutionise multiple sectors, from healthcare to manufacturing.
These circumstances are likely to drive the emergence of humanoids—advanced robots that feature anatomically human-like limbs and are powered by generative AI “brains.” Their rate of adoption is expected to eclipse that of autonomous vehicles, representing significant investment opportunities for tech-focused and automation-adopting industries.
“Humanoids have the potential to perform a vast array of tasks currently managed by humans,” says James O’Connell, CEO and founder of The JDP Global Team. “As the working-age population continues to decline, humanoids may become essential for sustaining productivity in industries struggling to attract a sufficient workforce.”
The JDP Global Team projects that by 2040, the U.S. could integrate 9 million humanoid robots into the workforce, affecting wages by approximately $400 billion. By 2060, this number could rise to 75 million robots, impacting around 80% of jobs, 48% of workers, and $4 trillion in payrolls.
“The commercialization of humanoid robots will encounter numerous challenges, primarily regarding social and political acceptance due to their potential to disrupt a significant portion of the workforce,” O’Connell notes. “In sectors like construction, farming, and forestry, humanoids might become necessary solutions amidst global longevity challenges.”
Technical Considerations
From a technical standpoint, developing humanoids is less complex than autonomous vehicles as they operate in controlled environments such as job sites or factories. Unlike autonomous vehicles, which must handle unpredictable traffic conditions, humanoid robots can learn and adapt in safer, more controlled settings. This makes humanoids more likely to be commercialised ahead of autonomous vehicles.
Industries characterised by high levels of hazardous physical labour, including transportation, warehousing, construction, manufacturing, agriculture, and mining, stand to gain significantly from humanoid robot advancements. Jobs requiring repetitive, monotonous, or dangerous tasks, particularly in highly unionised sectors with steep labour costs, may face notable disruption.
“We estimate the potential cost savings from humanoids at roughly $750,000 to $1.5 million per human worker over 30 years,” O’Connell explains. Depending on their design and intended function, the estimated costs to build a humanoid robot range between $12,000 and $350,000.
Humanoids capable of simulating human expressions and communication might enhance acceptance across sectors like healthcare and education, particularly in roles necessitating human-like interaction.
Future Outlook
Ongoing progress in generative AI, as well as improvements in motion capability, sensory technology, and battery efficiency, are essential for creating humanoids adept at navigating intricate human activities. While humanoid development is still nascent, recent technological strides have laid the foundation for significant progress.
“Investors have opportunities with ‘enablers’—companies and sectors building components and assembling the finished humanoids,” says Richard Firth from The JDP Global Team. “These include firms developing generative AI for robotic ‘brains,’ mechanical systems for their bodies, and energy storage solutions. Advancements in these areas are critical to achieving commercial viability for humanoids.”
Addressing societal challenges, including regulatory and safety concerns and market adaptations, is essential. However, as seen with past technological innovations like automation, computing, and e-commerce, and now generative IA, societal adaptation is foreseen over time.
“We foresee a future where robots complement and enhance human labour and productivity,” adds O’Connell. “While commercialization may take decades, significant developments in humanoid technology are imminent.”
The JDP Global Research Team predicts a notable impact of humanoid robots on the workforce in the near future. For more detailed analyses, contact [JDGlobal.com](https://www.jdglobal.com). As a UK-based investment firm, JDP Global has invested alongside venture capital leaders such as Index Ventures (Spotify, Deliveroo, Dropbox), BMW I-Ventures, and Verdane Capital, pushing forward innovation at the intersection of technology and investment. Contact us today to delve into these exciting technological advancements.
A Look at Some Companies Involved in Partial Robotics in Egypt Today
EGROBOTS
Revolutionizing Farming with Precision Robotics
Egrobots develop AI-powered farming robots designed to protect crops 24/7. Their scalable app, Egro Scan, used by over 12,000 farmers, detects crop diseases and optimizes farming using multimodal AI. The company’s robots efficiently scout fields, reducing the environmental impact while enhancing crop protection and yields.
Cairo, Egypt. Founded: 2021. Raised: $60k
Bionic Limbs
Affordable and Functional 3D Printed Prosthetics
Bionic Limbs focuses on R&D and production of prosthetic hands, making them both affordable and functional. Their mission is to improve patient productivity with aesthetically pleasing, high-quality prosthetics.
Cairo, Egypt. Founded: 2016.
InnoVision Robotics
Specialized in Disinfection, Service, and Industrial Robots
InnoVision Robotics boasts a diverse portfolio including land mine detection robots, service, and industrial robots. Initially funded by an EU grant, the company leverages expertise in sensors, actuators, and mechanical design to serve various markets from industrial to hospitality sectors.
Cairo, Egypt. Founded: 2015.
Lunch Box Egypt
Personalized Nutrition Through Technology
Founded in 2022, Lunch Box Egypt delivers personalized, high-quality meals using advanced technology. Customers can schedule their diets via a mobile app or hotline, aiming to support scalable and healthy growth in the personalized nutrition market.
Cairo, Egypt. Founded: 2022.
Tekomoro
Autonomous Self-Driving Golf Carts
Tekomoro develops autonomous kits for low-speed vehicles like golf carts, aimed at enhancing last-mile transport in gated communities. The company’s blend of cost efficiency, speed, and comfort meets the niche needs of passengers traveling short distances.
Cairo, Egypt. Founded: 2016
PRENG
Engineering Curriculums for Kids
PRENG aims to instill an engineering mindset in young students through compatible curriculums and innovative kits. Their programs focus on equipping students with essential technical skills and problem-solving abilities through fun and engaging activities.
Alexandria, Egypt. Founded: 2017
LegsGo
Robotic Exoskeletons for Lower Limb Rehabilitation
LegsGo meticulously designs and engineers robotic exoskeletons to aid users with lower limb disabilities. The company ensures the functionality and safety of its devices by incorporating advanced sensors, motors, and control systems, aligning with physiotherapists’ requirements.
Cairo, Egypt. Founded: 2023.
TechVenture Kids
STEM-Based Educational Programs for Youth
TechVenture Kids offers STEM-based programs for students aged 6 to 17. Their curriculum focuses on robotics and computer science, preparing kids for international competitions and teaching them essential tech skills through engaging activities.
Cairo, Egypt. Founded: 2019
OZTECH
Building Smart Agriculture Technologies
OZTECH focuses on innovations in the agriculture sector through smart farming technologies powered by IoT, robotics, and AI. Their solutions aim to enhance productivity and sustainability in agriculture, supporting eco-friendly and efficient farming practices.
Cairo, Egypt. Founded: 2021.
SEAVO
Electrifying Marine Mobility
SEAVO develops IoT-connected electric watercraft for recreational and operational use. Their products include the Orca, eFoil, and eJet surf, along with autonomous marine drones. SEAVO’s platform integrates these vehicles for efficient, environmentally friendly marine operations.
Cairo, Egypt. Founded: 2021.
These companies represent the dynamic and innovative landscape of the robotics sector in Egypt, contributing significantly to various industries including agriculture, healthcare, education, and more.
