The rapid introduction of artificial intelligence (AI) into our daily lives can feel unsettling. There are fears that AI can eliminate the need for certain jobs and increase unemployment. This type of skepticism is normal, especially when our world is at the juncture of what could be a massive technological advancement. In our view, these concerns are unfounded.
Generative AI is an industry agnostic technology with a wide scope of application. It is being used in media, retail, manufacturing, education, power generation, supply chain, and more. While providing solutions to a wide range of companies, generative AI is also powering a nascent and rapidly growing industry: humanoid robotics.
We see humanoid robotics as the next step in the generative AI revolution. As AI advances, the humanoid robots they power are advancing as well. Similarly, humanoid robots are not meant to replace humans, but instead take on the “three D’s of work”: Dirty, dull, and dangerous.
Humanoid robots have the potential to take on work that is suboptimal (and costly) for human labor, reducing the average cost per hour, increasing safety conditions, and driving efficiency.1 With the potential for humanoid robotics to fill the gaps of the labor market and operating safely in questionable working conditions, the potential efficiency of the global economy could drive durable, higher growth.
1 Roundhill Investments, Employee of the Month: Humanoids vs Humans on 8/6/2025
Debunking Myths of AI
The Federal Reserve Bank of Dallas Texas recently conducted a survey of businesses within manufacturing, services, and retail. A majority of firms using or planning to use generative AI reported that generative AI did not or will not impact the need for workers. 8.3% of firms using generative AI and 6.3% of firms planning to, responded saying its usage would decrease the need for workers.
87.5% of firms reported that generative AI usage has or would lead to an increase or no change in high-skill positions (college degree or special training required). Meanwhile, a lion’s share of respondents reported similarly for mid and low-skill positions.
The narrative of job destruction from generative AI implementation seems to be overblown currently.
At the firm level, various benefits have been reported from the implementation of generative AI. ~60% of respondents saw or expect to see increased productivity. 47% are seeing access to better and/or more timely information. 26% are seeing improved consumer relations. 23% are seeing reductions in costs while 16% are seeing increased top-line growth.
The Future is Bright
Concerns about job destruction and little economic benefit from generative AI appear unfounded. Even at this rapidly developing but early stage, generative AI provides tangible benefits through streamlining processes, lowering costs, and growing the top line. Humanoid robotics are the next step forward in the generative AI revolution, taking on the dirty, dull and dangerous work that can be problematic for human labor.
New innovations will have their fair share of skeptics, but from our perspective, the innovations of generative AI and humanoid robotics are only getting going.
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