Warehouses have used robotics for decades but without the ability to learn.

In 2004, the film ‘I Robot’ released. At that time, few people thought seriously about the applications and impact that AI technology could have throughout and within society. A few years later, and AI has found its way into everyday life. Smartphones and TVs are in pockets and homes, and poker bots beat human opposition at their own game, as was the case with the Liberatus program. Plus, Alexa listens to and understands voice commands.

What was once a sci-fi vision is now fast becoming a reality, as larger corporations push the application of it into businesses and personal lives. As such, it’s critical to examine and understand the impact, as AI and automation technology will lead to significant cultural changes in the way people work and live. Specifically, AI will transform the warehouse operations industry in several key ways.

AI and Data Analysis

AI can collect and analyse huge data sets to identify patterns and make predictions. This powerful predictive behaviour can then improve a specific process.

Although AI applications exist to solve specific needs, rather than receiving a set program, they receive the intelligence to learn, known as machine learning. The poker bot mentioned earlier, Liberatus, taught itself to play Texas Hold ‘em and continually adapted as it took on and beat four of the top poker pros. Others have tried to replicate the AI, but poker bots are generally weak and beatable.

Poker bots like these are significant to mention here, as poker is a game of incomplete information and, therefore, difficult for AI to gauge. The more data that is available, the more able an AI program can learn and perform its task.

In the warehouse operations industry, AI allows companies to make improvements in several areas, from picking efficiency to order accuracy.

Warehouse Process Efficiency

One of the primary functions of AI in the warehousing industry is to improve process efficiency. Here are a few of the known applications:

  • Inventory Management – Amazon uses AI to predict demand for products and make accurate forecasts of order behaviour. This information (automatically) directs products for shipment to regional warehouses as well as manage overall stock levels. Smaller companies would benefit from better inventory management to free up storage space and improve cash flow.
  • Picking Efficiency – AI can improve picking efficiency in several ways, such as by detecting and processing similar orders together, working to prevent bottlenecks or suggesting workflow processes based on data. There is also an opportunity for human-machine interactive learning where AI collects data on employee picking sequences to replicate and improve choices.
  • Shipping and Instant Fulfilment – There is an increasing trend of instant fulfilment and next-day or same-day delivery, as a McKinsey report found that 25 percent of consumers said that they would pay a premium to get their package quicker. In doing so, integrated shipping systems find the lowest shipping rates and fastest options while 3D technology can even scan the parcel and choose the right packaging.

It’s easy to see how all these AI applications fit together to resemble a ‘smart’ warehouse, but how do physical robots (AI with a body) fit into the picture?

Robotics in Warehouses

The Amazon Kiva

Of course, robotics in warehouses is nothing new. The Industrial Revolution brought about significant changes to nearly every sector, and robotic arms and conveyor belts started to play a key role in operations. Such improved efficiency of production but also, proved hazardous to the workforce at times, both in unemployment as well as death and injury, as was the case with Robert Williams, the first person ever killed by a robot.

The difference back then was that robots received single programs, as opposed to having intelligence and learning ability. The robots of warehouses today have roles as varied as picking and sorting, packing and unpacking, shipping and delivery.

If you didn’t think picking robots a possibility, robots are already capable of gripping and identifying inventory, though they are currently limited in what they can achieve. For example, the Amazon Kiva robots can pick up and distribute goods to warehouse stations.

How will automation affect the workforce?

It’s clear that AI is powerful and more than capable of analysing information to enhance decision-making and operations. Still, it’s critical to consider the human impact. If AI is better at poker, does that make poker players obsolete? If AI can package items, does that make pickers obsolete?

It’s a question that is hard to know the answer. As a society, we can only speculate as to the long-term impacts and the cultural shifts that will have to occur if technology replaces people across multiple industries.

However, the warehouse industry is at especially high risk of automation, with a McKinsey report suggesting as many as 57 percent of existing warehouse jobs will automate, a high percentage compared to other industries. That still leaves over 40 percent of functions non-automated. It is also expected that new jobs will result as warehouses require a workforce skilled in analytics and in the tech itself.

Either way, the numbers seem to suggest that some of the warehouse workforce could lose out to machines, with the operations at highest risk are physical activity, data collecting and data processing.

Warehouse managers will also have to adapt or face replacement by managers who have the knowledge to work with the new technology. The job will likely become less focused on employee management and more focused on analytics and improving the customer service experience.

The cost of implementing AI and robotics is quite high, and so at first, the warehousing industry may experience a polarisation, with well-funded start-ups and well-established larger companies able to make the switch while mid-range companies find financial or cultural restrains hard to overcome. 

As AI technology develops and becomes more able to beat humans, whether that be in online poker or at their job in the warehouse, it will be crucial to see the right policies protect the warehouse workforce. Yes, we should embrace technology, as it offers many potential benefits in warehouse operations, but we must also protect our people, too.

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