EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can Help
The hockey stick moment
Look at the numbers. Patent filings in AI, robotics, IoT, and extended reality have exploded. GenAI accuracy scores jumped from 3.3 to over 40 in just 18 months. Humanoid robots? Analysts* predict 60% annual growth, reaching 650 million units by 2050. Serial production of humanoid robots is expected within two to four years. Costs will drop. Adoption will accelerate. If you wait, you’ll be playing catch-up while competitors lock in talent, platforms, and market share.
Dr. Reisch explains what’s holding companies back. “In Europe, especially Germany, we place a high value on reliability and quality, often perfecting solutions before implementation. While this careful approach has its merits, it can slow us down. To stay competitive, we need to embrace agility: build an 80% solution with 20% of the effort, then iterate and improve. Accepting some imperfection is essential, companies like Tesla succeed by launching early and refining as they go. Our pursuit of perfection can actually hinder progress.”
Robotics-as-a-service
Dr. Reisch: “I recommend embracing EY’s motto: shape the future with confidence. If you don’t take charge of your own future, someone else will. United, Europe is the world’s largest economy, and Germany still ranks third globally. We have all the resources we need; we just need to act.” A compelling example comes from a service company maintaining industrial plants. Traditionally, their revenue grows linearly, more contracts require more employees, with margins around 10–15%. With robotics-as-a-service, once the infrastructure is in place, one trained robot can instantly scale to thousands. Margins multiply by four or five, and growth becomes exponential. This isn’t just theory: it’s happening right now.”
Why robotics-as-a-service will dominate
Cash is king. Capex restrictions are real. Subscription models win: just ask Netflix or SaaS providers.
Robotics-as-a-service offers:
- Lower upfront costs
- Scalable deployment
- Continuous updates and shared learning across fleets
Combine this with Europe’s manufacturing strengths—precision, reliability, system integration—and the opportunity is massive. But only if we act fast.
Disruption across industries
In the next five years, physical AI will become an integral part of daily life and work. We’ll see the emergence of cognitive robots: humanoids capable of adapting, learning, and training themselves. These robots will take on service tasks that are increasingly difficult to fill with human labor, such as assembling components in factories, cleaning offices, refilling coffee machines, and managing waste. Dr. Adrian Reisch: “In sectors like healthcare, humanoid robots will support facility management by sorting laundry and maintaining cleanliness, freeing up staff for more specialized work. While these developments may not be mainstream by 2026 or 2027, they are expected to become reality before 2030.”
Physical AI’s impact will extend far beyond manufacturing. More than half of all use cases will span industries such as logistics, healthcare, energy, and retail. Imagine robot dogs inspecting fire extinguishers, drones monitoring pipelines, and humanoids assisting in care facilities. The potential market is vast, and the transformation will be visible across the entire economy.