Investors are always trying to predict which trends are next. It is a challenging endeavor. The differences between short-term fads driven by hype and long-term trends driven by fundamental technological advances or structural changes in markets are often only apparent once it is too late. Generative AI is today at – or perhaps just past – the peak of the hype cycle. Until recently, a founder writing ‘Gen AI’ on their pitch deck would immediately 2x or 3x the valuation. There are discerning investors writing cheques to Gen AI companies, but many have succumbed to short-term thinking, denying the reality that commoditization of the technology is a certainty. Businesses risk being left with no competitive differentiation and a tricky path ahead. Robotics is one sector with all the hallmarks of a sustainable long-term trend. Entrepreneurs and investors increasingly recognize that software will not solve the world’s most challenging problems alone. And these problems are in markets where it is possible to build multi-billion dollar companies. The costs of producing or buying robots have fallen significantly in the past decade. At the same time, functionality and reliability have improved. This creates opportunities for entrepreneurs to develop solutions that answer customers’ problems at an economical price. Once operating, increased reliability means that ongoing servicing costs do not threaten unit economics. Modern robotics companies can deliver rapid payback of the upfront hardware cost and attractive margins.
Full story : 5 Reasons Robotics Is The Next Multi-Decade Trend To Watch.
