Robot Costs & Automation: Future of Work Predictions
The Rise of Affordable Robotics and the “Robots-as-a-service” Model
Futurist Dr. Pero Micic forecasts a significant transformation in the labor landscape driven by rapidly decreasing robotics costs. His analysis highlights a growing economic advantage for robotic labor, currently reducing costs by approximately 70% compared to human employees.
A key factor in this shift is the operational capacity of robots. Unlike human workers averaging 1,975 work hours annually, robots can operate for around 6,600 hours per year – 20 hours a day, 330 days a year – without requiring breaks, sleep, or paid time off. with a serviceable lifespan exceeding eight years,robots offer continuous productivity.
Currently, producing a robot ranges in cost from $11,000 to $33,000. Annual operating expenses, including maintenance and monitoring, fall between $23,000 and $30,000, translating to an hourly cost of $10.86 to $13.81. In contrast, the total cost of human labor, including benefits, averages $42.53 per hour. This difference allows companies to perhaps save up to $200,000 annually per robot deployed.
Micic anticipates further cost reductions as production volumes increase. He projects robot costs could fall below $10 per hour in the near future, and potentially to $5 or even $1 per hour by 2035, driven by advancements in manufacturing techniques and artificial intelligence. The next generation of robots is expected to be twice as fast and more productive than current models.
This accessibility is being further enabled by the emergence of “Robots-as-a-Service” (RaaS). This model allows companies to rent robots based on usage - hourly, per task, or per project – rather than making a substantial upfront investment. RaaS democratizes access to advanced robotics, particularly for small businesses, and mitigates financial risk while promoting automation flexibility.
While current robotic systems still require some human oversight – Micic estimates $18,000 annually for approximately 30 minutes of daily monitoring – the integration of cloud AI and increasing autonomy are expected to reduce this need over time.
Though,the widespread adoption of affordable robotics raises concerns about potential job displacement,particularly for skilled workers,and the potential for social instability. Discussions surrounding mitigating strategies, such as a robot tax or the implementation of a universal basic income, are gaining traction as a response to these potential challenges.