Physical AI Steps in as Global Workforce Shrinks

U.S. manufacturers are projected to leave 2.1 million jobs unfilled by 2030. In a 2021 study, the Manufacturing Institute estimated that gap could cost the economy $1 trillion in that year alone. In construction, the Associated Builders and Contractors earlier this year projected the industry needed 439,000 additional workers in 2025 just to keep pace with demand.

Companies are deploying AI-powered robots and autonomous equipment not to cut headcount, but because the headcount isn’t there. ManpowerGroup’s 2026 Talent Shortage Survey found 72% of employers globally reported difficulty finding the talent they need. That figure has held above 70% for several consecutive years.

Humanoid Robots Fill Shifts

Agility Robotics reported in November that its Digit humanoid robot had moved over 100,000 totes in live commerce operations. The robot now runs across multiple Fortune 500 partners. In April, Agility Robotics detailed deployments at Amazon, Schaeffler Group and logistics provider GXO.

According to a 2024 Manufacturing Dive report, Figure AI’s Figure 02 robots ran 10-hour shifts at BMW’s Spartanburg, S.C. plant over 11 months. The robots processed more than 90,000 sheet-metal cycles on the active assembly line. BMW has since expanded the program to its Leipzig, Germany facility.

In an April report on physical AI adoption among companies in Japan, TechCrunch said Japan’s population declined for a 14th straight year in 2024, with those of working age accounting for 59.6% of the total. That share is projected to shrink by nearly 15 million over the next two decades. “Physical AI is being bought as a continuity tool: how do you keep factories, warehouses, infrastructure and service operations running with fewer people?” Global Brain General Partner Hogil Doh told TechCrunch. Sho Yamanaka of Salesforce Ventures told the news outlet that the country’s labor shortage made physical AI necessary, even urgent.

Robot Market Taking Shape

Nvidia announced in October that companies including Agility Robotics, Figure and Skild AI were using its Omniverse technologies to build robotic factories and autonomous collaborative robots. The company said the effort is aimed at overcoming labor shortages across U.S. industry. “The ChatGPT moment for physical AI is here,” Nvidia CEO Jensen Huang said at CES 2026 in January.

Per the TechCrunch report, Japan’s Ministry of Economy, Trade and Industry said in March that it aims to capture a 30% share of the global physical AI market by 2040. The government committed roughly $6.3 billion to core AI capabilities, robotics integration and industrial deployment.

In a February 2024 report, Goldman Sachs projected the humanoid robot market will reach $38 billion by 2035, up from a prior Goldman estimate of $6 billion. Manufacturing costs across the sector fell 40% between 2023 and 2024. Morgan Stanley in May 2025 estimated the broader humanoid market, including supply chains and services, will reach $5 trillion by 2050.

Retiring Boomers Driving Robot Deployment

By 2030, an estimated 30.4 million baby boomers will reach the traditional retirement age of 65. The share of the U.S. population over age 65 was 12.4% in 2007 and 17.9 in 2024. It is projected to reach 21.2% by 2035. Employers will have to replace a lot of those vacancies — one way or another.