Can AI robots fix manufacturing’s toughest automation problems? – Crypto News

How significant is this technology? Can artificial-intelligence-powered robots really fix some of the most critical pain points in manufacturing and upend the industry? What are some of the challenges to including AI robots in manufacturing? Let’s take a look.

What’s the state of AI robotics in manufacturing?

The overall robotics market is projected to grow rapidly from $73 billion in 2025 to $88 billion in 2026 and $218 billion by 2030, at a compound annual growth rate of 19.86%, according to data from Mordor Intelligence. Meanwhile, industrial robots installations have been climbing steadily over the last decade. New installations grew from 221,000 units in 2014 to 542,000 in 2024, having come in above 500,000 since 2021, according to the International Federation of Robotics.

However, not all these robots are AI-enabled. AI technology in robotics, though nascent, is increasingly being used for tasks such as predictive maintenance, visual inspection through computer vision, and real-time optimisation of production lines. Though full-scale autonomy is still at an early stage, companies are actively introducing more AI on their factory floors – from robotic arms to full-fledged humanoids that can walk, crouch, run and jump.

What makes AI robots appealing to manufacturers?

AI-enabled robotics, also known as physical AI or industrial AI, promises to increase productivity, improve quality control, and create more flexibility on a factory floor. Perhaps the largest benefit, however, is labour cost savings. According to a November 2025 McKinsey report, physical robots now have the technical potential to automate activities that account for 13% of all work hours, contributing to a broader automation impact on nearly $16 trillion in global wages.

One of the biggest issues in present-day manufacturing is the increasing complexity of individual parts. Traditionally, industrial robots have been trained on specific parts and attaching them a specific way repeatedly. Now, companies are creating parts that have slight variations, or are placed differently or multiple stock keeping units in a production line. AI robots, instead of requiring parts to be arranged a specific way, can now pick up parts from bins, align them and slot them into a product.

Similarly, while retrofitting a production line might be time-consuming, technology that allows for digital twins gives companies a simulation of what their production lines would look like before implementation. This in turn allows them to spot gaps and potential inefficiencies or breakdowns before they deploy the robots in the real world.

AI robots can also improve human safety by eliminating the need for a person to be on the line at all. However, for this to happen, companies would need to figure out how to keep AI robots up and running for as long as a human. This would involve solving for fast battery replacement or charging.

What are the challenges to integrating AI robots into manufacturing?

Perhaps the main issue for manufacturers is integrating AI robots into their processes smoothly. In the short term, companies doing so have seen their productivity drop as robots replace humans, according to a paper presented at a European Central Bank conference last year. However, in the long run, the benefits are expected to outweigh the negatives.

Then there is the challenge of integrating these robots into legacy factory systems. According to a Deloitte report, some of the challenges around this include “leadership buy-in, technology investment, resource constraints, change management and adoption, and value tracking and realization”.

There are other issues as well, such as high retrofitting costs and capital costs for full-scale integration. Even if a company is willing to transform its product lines, the process can take anywhere from 3-5 years for a single factory.

What are some large companies doing?

Several large companies worldwide have robotics divisions that specifically cater to the manufacturing industry.

• German company Siemens is integrating AI into its factory-automation software to ensure production lines are adaptive and that maintenance issues can be flagged early. Such interventions could reduce production downtime and boost output.
• ABB, headquartered in Switzerland, has its own line of robots for use in both manufacturing and logistics. The company’s RobotStudio suite facilitates advanced simulation and programming, enabling faster virtual commissioning and reducing the time required to deploy robots into their workflows.
• Hyundai, through its subsidiary Boston Dynamics, plans to manufacture 30,000 robots a year by 2028 and integrate them into its warehouses and factories.

These shifts signal a transition from the rigid, pre-programmed kinematics of traditional production lines toward autonomous mobile robots and increasingly capable humanoid prototypes.