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Will Amazon’s robotic revolution spark a new wave of job losses?

Amazon says it will create new jobs to replace roles taken over by machines, but it isn’t clear whether this will happen quickly enough
Inside Amazon’s Operations Innovation Lab in Vercelli, Italy
Sam Todd/Amazon

The world’s largest manufacturer of robots is a company you have probably heard of. As of last year, Amazon had installed more than 750,000 robots in its warehouses, and it is investing hundreds of millions of pounds on developing and building more. Many of these robots perform tasks that were once carried out by people, such as packing, sorting and labelling. Are we seeing the beginning of a new wave of automation replacing human workers across many industries?

To find out, I visited Amazon’s Operations Innovation Lab, where it develops and tests new robots. Located a stone’s throw from the Italian Alps in the town of Vercelli, the robotic lab was opening to the press and the public for the first time in an effort to assuage fears about job losses.

I had seen some of the robots that make up Amazon’s packaging line in videos, but seeing their speed and complexity up close was astounding. Snaking around a vast warehouse set up like an exhibition space, they were twisting and writhing in constant motion.

Rubber suction cups guided by computer vision AI placed packages on conveyor belts, while a robotic arm the size of a double-decker bus fastened boxes onto pallets. Occupying a central location was Amazon’s shiny new robot it calls the Universal Robotic Labeller (URL), a spider-like device that can print and stick a label to any package, regardless of shape or size.

, Amazon’s director of global robotics, says that the URL will mean warehouse workers will no longer have to perform the repetitive motions of fixing labels to unusually shaped packages, freeing them up to work on other tasks like operating or maintaining the URL machine.

“The important thing is that every time we develop the technology, we also create a new training package for the employees to learn new skills,” says La Rovere.

But it is unclear whether creating new jobs and retraining staff can happen quickly enough to prevent job losses, says at the University of Oxford. While new jobs, like robot technicians and software engineers, were created when roles in the manufacturing industry were automated away, there is no guarantee that this will happen at a sufficient pace in the future, he says. “There is no law of economics that suggests that those employment opportunities must counterbalance those jobs that are being displaced,” says Frey.

I heard from multiple Amazon employees at the event that the goal is for the machines to work alongside humans. According to La Rovere, more than “50,000 jobs have been enhanced by the use of robotics and technology”, though he didn’t go into specifics.

Amazon has over 1.5 million full-time and part-time employees, many of whom carry out tasks I saw being performed by robots. If its £600 million investment in robotic equipment isn’t going to put some people out of work, it will need a vast programme of retraining and legions of new jobs.

“Automation is good, but it’s an illusion to think that automation automatically means more employment opportunities and more interesting work for the people affected by it,” says Frey. “That has certainly not been the historical experience.”

Amazon’s vision of a human-robot love-in is also hard to square with the company’s recent testing of humanoid robots in its warehouses. Last year, it created by firm Agility Robotics, in one of its Seattle warehouses. When I asked Sarah Rhoads, who oversees Amazon’s global workplace safety, what role these robots might play in the near future, she said that they were “so new and emerging it’s too early to speculate on”.

Even if Amazon doesn’t place humanoid robots at the centre of its automated vision, there is huge interest in them, not least from ex-Amazon CEO Jeff Bezos. Bezos has invested $100 million in Figure AI, a company with the stated goal of bringing “a general purpose humanoid to life”.

Last week, robotics company Boston Dynamics also unveiled its sleek and nimble fully electric Atlas robot, a replacement for the previous hydraulic model. The company says it is “designed for real-world applications”, and will be first tested in Hyundai’s car factories.

The extent to which robotic technology will affect human jobs is highly uncertain, says at the London School of Economics, and it will take time for full automation to take place.

However, recent studies have estimated that repetitive, low-skilled work, as well as data collection and data processing tasks, will fall by 12 per cent as a share of all work by 2030 due to automation, he says.

Alex Wilkins’s trip was paid for by Amazon.

Topics: robotics