Humanoid Robots Will Be Bigger Than Artificial Intelligence—And Business Leaders Are Not Ready

For most everyone, the interaction with artificial intelligence (AI) has been on a screen or on the phone. AI answers questions, summarizes documents, drafts emails, and quietly optimizes our digital lives. That will continue, but AI is beginning to jump from screens and into the physical world. Jensen Huang, CEO of NVIDIA, calls this the dawn of physical AI. 

This new world will be here sooner than expected. Foxconn, one of the world’s largest electronics manufacturers, has announced that it will begin producing humanoid robots in the United States as early as 2026. Its new Houston, Texas, facility will be among the first in the world to deploy humanoids powered by NVIDIA’s Isaac GR00T N platform. They will use the plant as a pilot site to scale humanoid robotics across its global manufacturing footprint. They are also preparing to build robots that will help assemble the robots.

AI Out Of The Cloud 

AI lives in a laptop or smartphone; that is where we all know it to be. But the movement to humanoid platforms will fundamentally change our understanding of AI. Breakthroughs in three areas are what is allowing physical AI to become viable at an industrial scale:

• Foundation models for robotics now give robots a generalized understanding of the physical world. 
• High-fidelity simulation lets robots “practice” millions of hours in virtual environments before ever touching a factory floor. 
• Multimodal learning allows robots to learn from text, video, and human demonstrations instead of needing painstaking line-by-line programming. 

The result is a new class of humanoids that can move, carry, lift, sort, and navigate complex environments. They can work in warehouses, logistics centers, and assembly lines, and learn new tasks with software updates.  

Foxconn’s plan includes one bipedal model and one model with wheels, both designed to operate in environments built for people. This results in companies not needing to redesign layouts as the humanoids will step into existing set-ups. This allows adoption to accelerate. 

Economic Shockwaves 

Humanoid robots are estimated to cost around US$20,000 to $30,000. Consider that it can also work around the clock, doesn’t require sick time or paid time off, has no need for health insurance, and can be retrained in hours through a software update. Can you see where this is heading? All the work human factory workers can do without associated labor costs. This is a direct restructuring of labor economics. Manufacturing will change first, then logistics, warehousing, and retail in short order. Defense and security applications will not be far behind. 

There is also potential for robotics to impact the worker shortages in elder care and hospitality. And countries that embrace embodied AI will see productivity gains similar to those produced by the PC or the smartphone. Those that move slowly will see their industry competitors fly past them.  

Humanoid Robotics Will Outscale Traditional AI 

AI now creates digital productivity, drafting reports, writing code, designing graphics, and automating administrative work. But humanoid robots create tangible objects. They move goods and stock warehouses, operate machinery, and deliver services in the real world. And this is where economies are built. Manufacturing, transportation, construction, agriculture, and care work are what drive gross domestic product (GDP). Digital AI can optimize these industries, but it cannot run them as humanoids can. 

The shift from AI that stays behind a screen to AI that acts in the world will be more disruptive than the PC, the smartphone, and the cloud combined. Those technologies reshaped how we interact with information. Humanoid robotics will reshape how we interact with the entire physical economy. 

Strategy Lessons For Business Leaders 

For CEOs, operators, investors, and policymakers, you have to accept that humanoid robots are coming, and in many places, have already arrived. You need to shift focus and planning to what you do to best leverage this new reality. Here’s how:

1. Build an embodied AI roadmap. Companies should begin mapping which tasks can be automated through humanoids, how workflows will change, and what digital infrastructure (data, connectivity, simulation) needs to be built to support robotics. 

2. Treat humanoids as a team, not a pilot. The biggest mistake companies make with automation is treating it as a side project. Humanoids must be integrated into operations, training, maintenance, and workforce planning from day one. 

3. Invest in infrastructure long before deployment. Humanoids require high-performance computing, large-scale simulation environments, robotic data centers, and energy systems capable of supporting a new class of industrial automation. Build these investments into all of your budgeting plans for 2026 and the next five years.  

4. Prepare your workforce for collaboration with robotics. The future will not be robot-only or human-only, it will be a hybrid reality. Employees must learn to manage, supervise, and collaborate with physical AI. New roles will be created for robot maintenance, robot training, and workflow integration. 

5. Work with policymakers, not around them. Embodied AI raises new regulatory questions around safety, employment, ethics, and industrial policy. I have pounded the drum for years that for any type of AI to succeed, there has to be a public-private partnership in the true sense of the word. Leaders who help shape regulation and legislation will have a massive competitive advantage. 

A Humanoid Robot World Is Upon Us 

Humanoid robots have been science fiction fodder for decades, until now. They are being assembled in the United States, and within the next two years, they will be a part of the workforce. The companies moving first will gain a decade-long edge in productivity and profitability. The ones who hesitate will fall behind. The age of the humanoid workforce is beginning, and leaders who are not preparing now will find themselves competing and losing to companies and countries that are. 

The question is no longer whether humanoid robots will reshape the global economy. It is whether the people in charge are ready. 

About The Author 

Mark Minevich is the President of Going Global Ventures (GGV), a New York-based investment, technology, and strategic advisory firm. Minevich is also a strategic advisor to Mayfield, a leading venture capital firm in Silicon Valley. Minevich is recognized globally as a digital cognitive artificial intelligence strategist, global social innovation and technology executive, United Nations advisor, author, columnist, private investor, and venture capitalist.