Robots-as-a-Service: Automation at a fraction of the cost

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Robots-as-a-Service: Automation at a fraction of the cost

Robots-as-a-Service: Automation at a fraction of the cost

Subheading text
This drive for efficiency has led to virtual and physical robots becoming available for rent, optimizing efficiency in the modern workplace.
    • Author:
    • Author name
      Quantumrun Foresight
    • October 10, 2022

    Insight summary

    Robots-as-a-Service (RaaS) is changing the game by making automation accessible and affordable for small to mid-sized businesses. Through subscription models, companies can easily scale their robotic workforce to meet fluctuating demands, eliminating the need for hefty upfront investments in technology and training. However, the rise of RaaS also brings challenges, such as workforce adaptation and ethical considerations, signaling a need for thoughtful planning and regulation.

    Robots-as-a-service context

    Robotic automation processes are a must-have for any company wanting to improve its efficiency. However, upgrading IT infrastructures and buying and maintaining equipment for robots can be too expensive for some small and mid-sized organizations. With robots-as-a-service (RaaS), this pain point is eliminated.

    RaaS installations could reach 13 million by 2026 with a revenue value of USD $34 billion, according to consultancy firm ABI Research. As more vendors offer robotic devices and cloud-based subscription services, small and mid-sized firms can begin renting robots as needed and customize them in dynamic ways to best suit their operations. Firms no longer have to invest in maintaining and upgrading robotic technology, including training personnel and retiring obsolete equipment. 

    RaaS is composed of both virtual robots, which use artificial intelligence (AI) to automate business processes such as customer service and invoice processing, and physical robots typically used in the warehousing, manufacturing, and security industries. For firms that are unsure if robots are ideal for their business model, RaaS is a cost-effective way of testing out certain functionalities.

    Disruptive impact

    Companies that quickly adapt to automation through RaaS are likely to attract the attention of big tech firms like Amazon and Alphabet. These giants could develop comprehensive RaaS tools that bundle machine learning, analytics, and interconnectivity features, offering a one-stop solution for businesses. For instance, in the security sector, drones could be deployed to patrol areas, using AI algorithms to process real-time data and optimize their routes. This trend can make security measures more efficient and responsive, potentially reducing the need for human security personnel.

    The flexibility of RaaS is another key advantage, especially for businesses with fluctuating demands. Providers often offer subscription-based models that allow companies to scale their robotic workforce up or down as needed. During peak seasons, a retailer could subscribe to additional robots for inventory management, and then return them when demand slows down. This flexibility can extend to leasing entire facilities run by robots, which may lead to a decrease in human employment in certain sectors like manufacturing and warehousing.

    While RaaS can bring about efficiency and cost savings, it also presents challenges that companies and governments may need to address. As automation becomes more prevalent, there could be a shift in the types of skills that are in demand, with a greater focus on roles that manage and maintain these robotic systems. Governments may need to invest in retraining programs to help workers adapt to this changing landscape. Additionally, ethical and regulatory considerations, such as data privacy and safety standards, may become increasingly important as RaaS continues to grow in various industries.

    Implications of RaaS 

    Wider implications of increasing RaaS adoption may include:

    • Companies using RaaS to automate certain business processes during peak times like month-end or year-end or holiday seasons to optimize their staffing levels and lower operational expenses while also increasing efficiency.
    • Firms renting robots and re-programming them repeatedly—depending on which function they need at any given moment—thereby creating an increased demand for computer programmers and robotics professionals.
    • Companies renting an entire automated “department” such as accounting or manufacturing instead of implementing automation solutions across the organization.
    • More organizations investing in owned automation assets after completing low-risk trials with RaaS providers.
    • Workforce morale potentially declining in a wide variety of workplaces amid job security fears.
    • Increased collaboration between humans and robots as these machines continue to become more sophisticated and cost-effective.

    Questions to consider

    • Would your organization be more willing to invest in robotic automation if it had access to RaaS services?
    • How might RaaS become a benefit for human manual labor?

    Insight references

    The following popular and institutional links were referenced for this insight:

    Association for Advancing Automation The Rise of Robots-as-a-Service