AI-Powered Robotics Set to Transform Global Manufacturing, Says Intrinsic CEO

The rise of artificial intelligence (AI) in robotics may transform the global manufacturing landscape, offering new opportunities for efficiency and competitiveness beyond low labor costs, according to Wendy Tan White, CEO of Intrinsic, a subsidiary of Alphabet.

The Factory of the Future

Intrinsic, which originated from Google X, aims to make industrial robotics smarter and more accessible. The company is working with Foxconn to develop a “factory of the future”, integrating AI-powered robotics capable of performing complex tasks with speed and precision.

Tan White emphasized that the goal is not merely incremental improvements but a complete rethinking of production. High-mix manufacturing, where a variety of products can be produced in the same line or cell, is a key focus, allowing flexibility and responsiveness to market demands.

Empowering Smaller Players and Reshoring Manufacturing

AI robotics could level the playing field for smaller businesses and countries with higher labor costs. By leveraging software-as-a-service (SaaS) robotics solutions, companies can reshore manufacturing to more expensive regions while maintaining efficiency and productivity.

“This approach enables production in locations where traditional manufacturing would be too costly,” Tan White explained, highlighting the potential for a global redistribution of industrial power.

Economic Impact and AI Integration

According to a McKinsey report, AI-driven robotics could unlock $2.9 trillion in economic value in the United States by 2030, provided organizations redesign workflows around humans, AI agents, and robots working collaboratively.

Intrinsic’s mission reflects a broader trend in AI-driven industrial innovation, demonstrating how intelligent robotics could reshape supply chains, boost competitiveness, and empower a new generation of manufacturers globally.