Welcome to a new edition of The Board: Distillation Aftershots (*).
This newsletter shares curious and interesting insights and data points distilled from enterprise technology to identify what’s notable. If you want to subscribe to the newsletter, in your inbox every Sunday morning, please click here.
In this issue, we will continue our discussion of robots and robotics. Previously, I wrote about humanoid robots and their limited usefulness. Today, I’d like to talk about functional robots… the ones that don’t look like us but do a good job.
First, my take.
Last week, I made my case against humanoid robots: they are cute, work in movies, make me laugh, but they’re not valuable to businesses (for the most part; as with anything else, use cases apply). Many reasons, mostly related to efficiency versus costs (how much it costs to make a humanoid work like a human, when there’s no need for such complexity).
This week, I want to discuss the opposite: the ROI inherent in non-humanoid robots and the efficiency they deliver as they move from innovation spend to infrastructure ROI. Treat is a system, not a tool, and it locks in structural cost and competitive advantages. It is no longer a novelty; it works.
As shown in the resources below, large organizations have turned to robots to save time and money. Whether we are talking about reducing health and life risks, speeding up processes, reducing costs, operating 24/7, automating manual tasks efficiently, or a combination of all these, we have proven that they work. What started in the 1980s and 1990s in manufacturing plants became more impressive for smaller outfits as robotics improved (and costs decreased, naturally).
Whether it’s Amazon running a dark warehouse where Roomba-like robots move merchandise 24/7 to speed up shipping, or UPS loading and unloading trucks to balance labor and health issues, these scenarios should spark the imagination of any other organization. Are there any repetitive tasks in your processes that could benefit from non-stop or safer operations? Are there menial tasks that are taking valuable time from team members who could be working on higher-revenue tasks? That’s the starting point.
More and more, robotics startups are moving to create highly-specialized, industry- and job-specific robots that return ROI in a short time (as low as six months, mostly fully repaid within two years). And the merger (or, better said, integration) of AI and robotics, which we are experiencing now, will further change these equations. Imagine mixing the autonomy of thought of an agent, with the mechanized operations of a robot – no longer a single, static operation but a dynamic, “thinking” one.
Imagine the possibilities – everyone else is, in 2026 and beyond.
Here are some reading resources:
- UPS deploys truck-unloading robots to optimize logistics, expanding a pilot program that showed great potential. They demonstrated ROI by addressing labor availability, injury risk, and peak-volume volatility. Published December 2025.
- Danfoss deployed autonomous mobile robots (AMRs) integrated with compact storage to manage growth without expanding the warehouse footprint. Published 2025
- Walmart continues to roll out robots across its regional distribution centers, using fleets of high-speed mobile robots for picking, sorting, and palletizing. Because they were deployed as a supply-chain platform, the ROI extends beyond a single function to all interdependent functions. Published 2025.
- Starship’s sidewalk delivery robots crossed 9+ million autonomous deliveries for Uber Eats, operating at urban and campus scale. One of the few robotics cases with multi-million transactions validating economics over novelty. Published 2025.
- Here’s a functional example, not tied to any one company: airports, hospitals, and others have adopted professional cleaning robots to address labor shortages and rising operating costs. Published 2025.
- A study reviewing numerous use cases and case studies found impressive results for organizations deploying functional robots: an average 18–24% ROI over 5 years; up to 30% reduction in labor costs; throughput gains of up to 40%; and space utilization improvements of up to 25%. Published September 2025.
What’s your take? We are fostering a community of executives who want to discuss these issues in depth. This newsletter is but a part of it. We welcome your feedback and look forward to engaging in these conversations.
If you are interested in exploring the full report, discussing the Board’s offering further, or have any additional questions, please contact me at [email protected], and I will be happy to connect with you.
(*) A normal distillation process produces byproducts: primary, simple ones called foreshots, and secondary, more complex and nuanced ones called aftershots. This newsletter highlights remnants from the distillation process, the “cutting room floor” elements, and shares insights to complement the monthly report.
