Although we’ve said it before, we’ll say it again: the robots are coming. Readers admittedly have the right to be sceptical about such an assertion given that the much-promised robot revolution has been slow in taking off, but we believe there are good reasons for optimism. Very simply: take robots and add AI. Artificial intelligence is moving beyond computers into physical and embodied environments. The results are quite revolutionary, as we will discuss in our next detailed theme piece, out later this month.
Look around and you can see robots hard at work in many environments. There are currently ~160 robots for every 10,000 employees, more than double levels achieved seven years prior, according to the International Federation of Robotics. Humans are also working with robots to achieve superior outcomes. Intuitive Surgical, the pioneer of robotic assisted minimally invasive surgery, reported 17% growth in procedures performed with its technology last year. More than 2.6m operations were successfully performed with Intuitive’s robotic tools last year.
Consider the maths, however. Robotic penetration (or the ratio of robots to humans) is less than 2% globally and does not even top 10% in South Korea, the world’s most ardent adopter. Equally, talk to Intuitive and they would suggest that no more than 20% of potentially addressable procedures are being performed with their technology at present. The runway, in other words, is significant.
What excites us, as our note will discuss in more detail, is how the latest emerging generation of robots can be considered as ‘humanoid.’ Not only do they look more like their breathing real-word counterparts (being bipedal, with five fingers per hand) but they are able to learn from experience, designed to replicate human movements through observing actions and videos. Similar to how iPhones receive new over-the-air software updates, so can robots, enhancing their abilities. Watch this space, and before long we should see more humanoids in factories, warehouses, assisting the elderly and elsewhere. If Elon Musk has his way, then they won’t just be working in Tesla’s factories, but humanoids could even be assisting him in building new worlds on other planets.
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Originally Posted February 5, 2025 – Robot reality
The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Heptagon Capital is an investor in Intuitive Surgical. The author of this piece has no personal direct investment in the business. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
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