Introduction

Robotics is the combination of automation and advanced artificial intelligence. Best defined as “smart machines,” robotics solutions are “full stack” (hardware and software) technology that can execute complex tasks in high-volume, precision-demanded environments. Robotics capabilities, now accelerated by advancements in AI, computing, and hardware components, are naturally suited to solve the complex problems facing the modern world. AI’s central role in robotics makes the industry poised to accelerate adoption and drive the development of intelligent systems capable of operating in complex environments.

The fundamental benefits of hardware investing have long been centered on hardware’s high defensibility compared to software, with stickier customers and the opportunity to build large, long-lasting companies. Investing in robotics captures all of the benefits of pure hardware investing, plus the ability to layer in software for even more long-lasting value. Eventually companies and investors can experience the compounding effects of an installed hardware customer base, subscription and services revenues, and decreasing marketing and overhead costs due to low churn.

The conventional challenge of robotics investing has been its high capital intensity, and long time to market. However, recent technological advancements and cost optimizations have greatly alleviated this concern. Looking ahead, the pace of innovation will continue to accelerate, fueled by generative AI applied to physical systems and ongoing advancements in computing, sensing, and actuation.

Robotics has truly evolved and is ready to accelerate at scale.