The term warehouse has traditionally brought to mind large storage facilities. People may picture inventory, forklifts, loading docks, and workers packing shipments. Before 2020, most people rarely thought about how these facilities affected the larger supply and demand system.
The pandemic changed that view. Essential goods became harder to access, and global supply chains became a major concern. Shortages of masks, cleaning supplies, groceries, vehicle parts, and electronics showed how important logistics operations are to everyday life.
These challenges also became a major issue for businesses.
According to DHL, only 5% of warehouses are fully automated. Another 15% use semi-automated systems such as conveyors for picking and placement. This means about 80% of warehouses still depend heavily on manual processes, although many use warehouse management software (WMS).


Warehouse Robotics and AI
Automation in warehousing, including robotics, is not new. However, earlier solutions often struggled to adapt to changing environments.
Traditional automated guided vehicles (AGVs) follow fixed routes. They were often more practical than autonomous mobile robots (AMRs).
AMRs can:
- Navigate changing environments
- Avoid obstacles
- Perform multiple tasks
However, they often cost more than traditional AGVs.
Robotic solutions can automate material handling processes. This helps businesses reduce internal transportation time, improve workplace safety, manage inventory better, and lower long-term costs.
AI is now changing warehouse robotics.
Companies like Covariant are bringing advanced AI capabilities to warehouse robots. Covariant has raised significant funding and was founded by former OpenAI researchers.
Covariant’s technology can:
- Enable natural language interaction with robots similar to chatbot experiences
- Allow robots to identify, pick, and move different items across warehouse layouts
- Apply AI models to existing robotics instead of building robots from scratch
- Use multimodal AI training to help robots understand the physical world
- Create simulations and videos to predict results before tasks are completed
- Develop sorting robots that improve through trial and error
Another company advancing AI-powered warehouse solutions is Pittsburgh-based Gather AI.
Researchers from Carnegie Mellon’s Robotics Institute founded the company. Gather AI has developed autonomous drone technology for warehouse inventory tracking.
Its platform uses AI-powered cameras to monitor inventory more efficiently.
Customers include companies in:
- Third-party logistics
- Retail
- Food and beverage
- Manufacturing
According to Gather AI CEO Sankalp Arora, “AI-powered cameras will transform supply chain traceability in a way similar to how barcodes impacted the industry in the 1980s.”
AI-powered robotics can also create safer environments for testing and development.
Warehouses provide controlled settings where human workers and robots can work together. Companies can test technologies such as AMRs in these environments.
This helps reduce risk and improve reliability before wider use.
Digital Twins Mirror the Physical World
As with other facilities of scale, warehouses make excellent spaces for the implementation of digital twin technology.
IoT: Connecting It All Together
Sensors are now being added to many parts of the supply chain.
These include:
- Transportation vehicles
- Containers
- Pallets
- Forklifts
As more sensors are used, collecting and using their data becomes essential for supply chain improvement.
Radio Frequency IDentification (RFID) tags can include integrated circuits. Simpler smart labels can also be used.


The Evolution of Warehouse Management Software
The most widely used smart warehouse technology is the warehouse management system (WMS).
WMS platforms are also changing as AI becomes more common.
Modern WMS platforms go beyond spreadsheets and simple inventory databases. They now use intelligent automation and predictive analytics to support better decisions.
With AI, WMS solutions can:
- Analyze data
- Identify trends
- Improve operations
- Support current workflows
- Help with future planning
**Smarter WMS software solutions can increasingly assist with: **
- Inventory management, including tracking stock, managing storage, and reducing costs
- Order fulfillment, including automated picking and packing with fewer errors
- Task/labor management, including assigning workers and preparing for peak demand
- Predictive data analytics for warehousing, including forecasting demand changes
- Enhanced logistics efficiency by analyzing current routines and workflows
- A shift towards the cloud makes these systems increasingly scalable, flexible, and cost-efficient even for smaller organizations. [Check out this PTP Report for more on cloud trends and impact in 2024 and beyond!]
- Direct integration with other systems, including ERP, transportation management, and personnel management
- Greater customization than ever-before, allowing businesses to improve specific warehouse processes
- Far-friendlier interfaces with better accessibility, easier training, and improved productivity
A better WMS can also reduce lost inventory.
Technology such as Gather AI allows drones with smart cameras to scan inventory directly. The system can then receive accurate information in real time.
AI can also help improve warehouse layouts and processes.
When combined with digital twin technology, businesses can test changes virtually before using them in the real warehouse. This can reduce waste and improve results.
Conclusion
References
The accelerating value of the Internet of Things, McKinsey
Gather AI secures new cash to scan inventory in warehouses using drones, TechCrunch
A Warehouse Robot Learns to Sort Out the Tricky Stuff, New York Times
RFID (radio frequency identification), TechTarget
The Secret Weapon Of Smart Warehouses & Data Centers? Generative AI, Forbes


