How AI-driven automation and collaborative robots are reshaping industries and portfolios

Collaborative robots: The rise of cobots

Collaborative robots—or cobots—are robotic systems engineered to operate in direct interaction with humans. Unlike traditional industrial robots, which are usually confined behind safety barriers, cobots are built with safety sensors, force limits, and adaptive software that allow them to work safely in shared spaces. They can be trained or programmed with minimal technical expertise and often take on lightweight, repetitive tasks that free up human workers for more complex roles.

This category is expanding access to automation across sectors. Small and mid-sized manufacturers are integrating cobots into existing workflows without costly redesigns. In healthcare, cobots assist with lab automation and rehabilitation. Logistics centres, food processors, and electronics producers are using cobots to improve throughput and address persistent labour shortages.

With their focus on flexibility, safety, and ease of deployment, cobots represent one of the most investable segments within emerging robotics technologies, bridging the gap between manual labour and full-scale automation.

AI-driven automation and industrial transformation

Artificial intelligence has become the core differentiator in modern robotics. While early robotic systems followed fixed programming, today's systems leverage AI to adapt to real-time inputs, learn from data, and operate with greater autonomy. This shift allows machines to perform tasks once dependent on human judgement.

The impact is visible across multiple sectors:

• In aerospace, AI-powered robots perform predictive maintenance, flagging potential failures before they happen.
• Semiconductor manufacturing is using AI-driven vision systems to detect microscopic defects on production lines.
• In commercial real estate, robots handle cleaning routines and security tasks after hours with minimal supervision.
• In logistics, AI platforms optimise warehouse workflows and guide mobile robots for faster, more accurate order fulfilment.

These applications show how AI-driven automation increases precision, lowers error rates, and improves flexibility.

What are the key drivers behind robotics adoption?

Robotics adoption responds to operational and structural pressures. Below are the main forces accelerating deployment across various sectors:

Labour shortages and demographic shifts

Ageing populations and declining workforces are pushing companies to rethink how work gets done. In sectors like manufacturing, healthcare, and logistics, finding skilled workers has become more difficult. Robotics offers a scalable way to fill these gaps without compromising output or safety.

Productivity and cost efficiency

Robots do not only automate but also optimise. Automation reduces errors, speeds up production, and enables 24/7 workflows. Lower labour costs, fewer accidents, and reduced downtime translate into measurable gains for companies. These efficiencies compound as systems mature and adapt through AI-driven feedback loops.

Supply chain resilience and scalability

Robotics is becoming essential for logistics operations. In warehouses and distribution hubs, automated systems manage inventory, fulfilment, and sorting—even under tight labour conditions or seasonal surges. This flexibility strengthens supply chain continuity and supports scalable operations.

Economic transformation and workforce evolution

Robotics redefine how value is created. By automating routine tasks, businesses can accelerate product cycles and redeploy human talent toward higher-value activities. This supports economic productivity, especially in regions facing demographic challenges.

How to invest in the robotics theme

As robotics investments are gaining traction, investors interested in this theme can gain exposure through individual stocks or diversified ETFs that track robotics and automation trends globally:

Robotics-related stocks to watch

Many listed companies are actively shaping the robotics ecosystem, ranging from industrial machinery and healthcare robotics to AI software and autonomous systems. Examples include:

• Nvidia (NVDA). AI chips used in robotics and autonomous machines
• ABB (ABBN.Y). Industrial and collaborative robots
• Fanuc (6954.T). High-precision manufacturing robotics
• Intuitive Surgical (ISRG). Robotic-assisted surgery systems
• Rockwell Automation (ROK). Industrial automation and control systems
• UiPath (PATH). Software-based robotic process automation
• Teradyne (TER). Cobots and automated testing systems
• PTC (PTC). Connectivity and software platforms for smart machines
• Keyence (6861.T). Vision systems and sensors for automation
• Yaskawa Electric (6506.T). Motion control and factory robotics

These companies operate in sectors like AI infrastructure, hardware, manufacturing systems, and surgical robotics, each offering a different perspective on automation.

Popular robotics ETFs

For broader exposure, investors can turn to ETFs that focus on robotics, automation, and AI. These funds typically include a global mix of hardware manufacturers, software developers, and component suppliers. Examples include:

• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• ROBO Global Robotics and Automation ETF (ROBO)
• VanEck Robotics ETF (IBOT)
• L&G ROBO Global Robotics and Automation UCITS ETF (IROB)
• iShares Automation & Robotics UCITS ETF (2B76)
• Xtrackers MSCI Global SDG 9 Industry, Innovation & Infrastructure ETF (SDG9)
• First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
• ARK Autonomous Technology & Robotics ETF (ARKQ)
• Pacer BlueStar Engineering the Future ETF (BULD)
• SPDR S&P Kensho Intelligent Structures ETF (SIMS)

Each ETF differs in its allocation strategy. Some focus heavily on industrial hardware, while others offer broader exposure to AI infrastructure, automation software, and component suppliers.

Key risks of robotics investing

Robotics offers long-term potential, but investing in the sector requires careful consideration of financial, operational, and policy-related risks.

These are the main challenges investors should keep in mind:

Capital intensity and commercial delays

Robotics development often requires heavy investment in R&D and hardware prototyping. Many companies face long timelines before reaching profitability. Delays in commercial rollout, unexpected cost overruns, or technical bottlenecks can erode early gains and stall adoption cycles.

Technological disruption and obsolescence

The pace of innovation in robotics is intense. AI models evolve, hardware becomes outdated, and new entrants regularly change the landscape. Companies that fail to adapt quickly risk falling behind. This raises the chance of holding businesses that lose relevance before they deliver meaningful returns.

Hype cycles and valuation risk

Investor enthusiasm around robotics and automation themes has led to inflated valuations in some segments. Stocks tied to emerging technologies can be volatile and sensitive to earnings misses, regulatory news, or broader market sentiment. Timing entries and managing exposure are critical if you want to minimise downside risk.

Regulatory friction and policy uncertainty

Robotics applications often intersect with sensitive areas such as healthcare, surveillance, and public infrastructure. Regulations vary widely across jurisdictions, and policy often lags behind technological capability. Export controls, liability frameworks, and safety certifications can all impact business models or limit market access.

Labour displacement and social pushback

As automation expands, concerns over job displacement and income inequality may fuel political or public resistance. This can slow adoption in sectors where human labour remains a sensitive issue, particularly in emerging markets or highly unionised industries.

Should robotics be on your investment radar?

Robotics is becoming a central force in how industries adapt to modern challenges. Systems powered by artificial intelligence are improving output, reducing inefficiencies, and enabling new forms of automation that weren't commercially viable a decade ago.

The trend is not driven by speculation but by measurable shifts in how businesses solve problems. Robotics addresses structural needs, such as labour shortages, precision tasks, and cost reduction, and offers exposure to technologies with growing economic relevance. Opportunities for traders and investors are plenty, as long as they enter the space with a clear view of its pace, risks, and direction.