February Round Up

Welcome back to Automation Insights. In this bi-weekly series, I explore the latest funding, collaborations, product updates, and funding news from cutting-edge warehouse automation, mobile robotics, and material handling companies across the US, Europe, and APAC.

In the last episode, we focused on the US startup companies with huge plans for 2025. We took a look at Agility Robotics, Covariant, Fox Robotics, Standard Bots, Vecna Robotics?, and so many more.

Whilst looking into a lot of these exciting and innovative businesses, it was clear that technologies like AI, robotics and machine learning are continuing to streamline operation and improve efficiency in supply chains. In this episode, let’s dive into AI and its potential across the industry.

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With the development of autonomous drones, robotic arms, and intelligent human-machine collaboration, warehousing is transforming.?

How AI is used in warehouses

• Inventory management
• Picking and packing
• Order fulfillment
• Route planning
• Space optimization

The benefits?

• Reduces the likelihood of human error
• Accelerates processes
• Enhances overall operational efficiency
• Minimizes both waste and overstock

The tech: Autonomous drones

Keeping warehouse inventory accurate has long been a complex and time-consuming challenge. Manual stock checks are not only labor-intensive but also susceptible to human error.

This issue becomes even more critical in large-scale warehouses managing thousands of SKUs, where even small discrepancies can result in substantial financial setbacks and damage to customer confidence. Research shows that 67% of businesses consider stockouts after an order is placed to be a major inventory issue that frustrates customers.

The tech: Robotic arms

Warehouses manage a wide range of products differing in size, shape, and weight. This variation creates logistical challenges, as conventional methods often result in inefficiencies, delays, and higher labor expenses. Manual handling is not only time-consuming but also increases the likelihood of product damage, particularly for delicate or irregularly shaped items. Globally, warehouses spend an estimated $120 billion annually on product picking.

Robotic arms equipped with advanced sensors and artificial intelligence can pick and place items with remarkable accuracy and efficiency. Using machine learning, these robotic systems adapt to different objects, refining their grip and movement based on shape, weight, and fragility.

Who’s in the AI race?

By 2024, over 30% of warehouses are expected to integrate robotics into their operations, a significant jump from 20% in 2021. AMRs are particularly popular, with a projected 15% annual growth rate through 2025.

The use of AI in warehouse management systems has surged, with 70% of large-scale warehouses adopting AI-driven solutions by 2024 to optimize inventory management, demand forecasting, and route planning. AI-powered systems are enhancing decision-making, predictive analytics, and optimizing warehouse operations.

Amazon: Amazon?is aiming to derive savings from its robotics investment as it ups AI spending. As of this week, the tech giant is expected to spend $35 billion on its retail network — which includes robotics-powered warehouses — to drive efficiencies and improve delivery speeds amid rising competition from the likes of?Temu. Most of the $100 billion the company will spend this year will go to artificial intelligence (AI) initiatives.

“We’re seeing today how fruitful this technology is in transforming our every day,”?Tye Brady, chief technologist at Amazon Fulfillment Technologies & Robotics, told the FT, adding that the company plans to “continue to invest” in automation. (Article found here: https://www.pymnts.com/amazon/2025/amazon-banking-on-robotics-savings-amid-increased-ai-spending/)

Ocado Group: The British online supermarket employs AI and robotics in its warehouses to optimize order fulfilment. Despite a recent slowdown in warehouse rollouts, Ocado remains committed to expanding its automated facilities.

Symbotic: Specializing in AI-powered warehouse automation, Symbotic provides systems that utilize autonomous robots and AI software for tasks like sorting and storing products. Their technology is used by major retailers, including Walmart and Target.

Covariant: This company develops AI solutions for robotic picking and sorting in warehouses. Covariant's technology enables robots to handle a wide variety of items, improving efficiency in fulfillment centers.

Agility Robotics: Known for creating humanoid robots like Digit, Agility Robotics integrates AI to perform tasks such as bulk material handling in warehouses, enhancing operational efficiency.

GREENBOX Systems LLC: A joint venture between SoftBank Group Corp. and Symbotic, GreenBox Systems plans to invest $144 million in constructing an automated warehouse in Georgia, USA, set to open in late 2025. The facility will employ advanced AI and robotics to minimize human involvement in sorting, packing, and shipping goods.

Honeywell: Partnering with Google, Honeywell aims to integrate Google's AI technology, Gemini, with its industrial data platform, Forge. This collaboration seeks to automate tasks and reduce project times, with AI-enabled solutions expected to be operational in 2025.

Walmart: The retail giant plans a $19.5 million upgrade to its distribution center in New Braunfels, Texas, starting in February 2025. The renovation will introduce robotics and automation systems to enhance storage and processing capabilities, effectively doubling the facility's shipping capacity without expanding its physical footprint.

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Other news this month:

Hai Robotics has released HaiPick Climb, a robotic solution that simplifies goods-to-person automation, enabling warehouses and distribution centers to retrofit existing facilities more easily.

Movu Robotics will be showcasing its latest innovations in warehouse automation at IntralogisteX 2025, taking place at NEC Birmingham from March 25–26, 2025.

Macrovey is set to showcase its cutting-edge warehouse automation solutions at ProMat 2025 in Chicago from March 17-20.

Nomagic has announced a €41.94 million funding round. The investment, joined by Khosla Ventures and Almaz Capital, will support Nomagic’s product development, sales, and marketing efforts.

Exotec has launched the next generation of its Skypod System, which offers higher performance, improved storage density and advanced features.

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Interested in help with your recruitment strategies? Reach out today and we can arrange a confidential discussion: jlangley@crimsonxt.com