While recently all the attention has been focused on AI and its impact on businesses, many business owners have embraced the tech and are already using it daily.
However, the impending introduction of robots into our daily business lives is much less obvious, and the reality appears to be much further away than the ubiquitous AI chatbots and AI agents.
In this article, we look at whether an artificial intelligence with a robot body poses a threat to small businesses, and if so, what can be done about it.
Here goes…
Robot Advancements
The traditional business model has seen robots mainly confined to large factories, warehouses or even science fiction movies.
However, that reality appears to be changing. Improvements in battery tech, AI and autonomous navigation mean that the potential for robotics to move outside of industrial applications and into real-world small business environments is a serious possibility.
The reality is here today, and it appears to be just a matter of time before the new reality becomes apparent to us all.
The Humanoid Robots
Some people argue that a humanoid robot is a very inefficient way to develop an autonomous machine.
However, the world is built with two-legged, roughly five to six foot tall humans in mind. A humanoid robot makes perfect sense if it’s to help us in our everyday lives, without the need to retrofit or alter our working environment or living spaces.
Elon Musk states that he expects more humanoid robots in circulation than humans in the not too distant future.
The main threat for businesses is that these robots could take on traditional roles in construction, restaurants, shops and even hotels.
Initially this may be deemed a great cost-cutting exercise for small enterprises. The downside for small businesses is that it is highly unlikely that a fleet of robots would be affordable.
While a robot does not need a salary, sick pay or holidays, the cost of purchasing, leasing or servicing such complicated machinery could be prohibitive for all but the largest of small businesses.
This could mean that only the largest players in the market would be able to take advantage of the cost savings, in the short term.
There is a genuine risk that autonomous robots could widen the competitive gap between large and small businesses.
Robotaxis
Robotaxis are another area that could seriously impact small businesses.
Many of the smaller taxi cab operators are already under pressure from ride-sharing sites such as Uber.
Many of the drivers on these ride-sharing apps are independent contractors or small businesses themselves in countries such as the USA, for example.
In the U.K. and E.U the drivers are considered workers with employee rights and benefits. However, the introduction of robotaxis could put all human-driven rides at risk.
The introduction of robotaxis could make it unviable to run a human-based taxi cab service or to drive for a ride-sharing service, outside of possibly a high-end chauffeur service.
Robotaxis could provide cheap convenience, without the need of a human driver. Robotaxis are not science fiction, and there are already fully functional systems in place around the world.
In China, a fully autonomous robotaxi service was launched in August 2026. In the U.S Waymo now runs paid fully autonomous robotaxi services since September 2026.
Tesla has been running supervised driverless taxis since June 2025 and went fully autonomous in June 2026.
Delivery Drones
Small delivery drones are already in place throughout many regions around the world.
These robotic drones can carry groceries, medical supplies to rural areas, or deliver parcels.
Small businesses may be able to utilise the technology to reduce delivery costs; however, it’s likely that the licences required to fly and maintain these devices, especially in densely populated areas, may limit use to larger businesses.
The other disadvantage for small businesses is that if drone delivery makes it possible for businesses to deliver quickly within a wider radius, it means that the advantage of being a local small retailer becomes less significant.
We have already seen that small retailers suffer considerably under the weight of cheap home delivery. The pressure on small businesses could increase significantly if we throw drone delivery into the mix.
Threat or Opportunity?
The real threat of these latest developments in robotics may not be the robots themselves, but the inability for small businesses to adapt and adopt the new tech.
The technology is expensive and is likely to remain so for some time. So, inherently, large companies could gain significant productivity advantages in the short term.
Robotic automation carries the benefits of potential productivity savings for both small and large businesses. However, the likely outcome is that many jobs will be eliminated by this emerging technology.
Already, many of these robots are incredibly dextrous, so do not be surprised if once thought of irreplaceable jobs are replaced by robots.
Jobs such as car mechanics, plumbers and electricians could all become a possibility for disruption in the near future.
How to Compete?
In the new reality, it may be impossible to halt the progress, but it may be possible to take advantage of it. Here are some potential ideas to consider should robotic automation take off.
- RaaS – Robot as a service – Businesses may prefer to hire a robot for a monthly fee rather than purchasing one outright. Entrepreneurs could purchase the robots and provide maintenance, software updates and replacement if necessary.
- Robotics Installation and Integration – Many small businesses will not have the skills to integrate their robots into their businesses. Entrepreneurs could set up businesses to help companies with robotic automation, robotic cleaning and delivery systems. Expertise in making a robot useful will be paramount.
- Robotic Maintenance – Eventually every robot will break down and need parts replaced. As the number of robots increases, so will the demand for robot maintenance businesses. Of course the question remains: will the most efficient of these companies use robots to maintain robots? It seems likely.
- Using Robots to Deliver a Human Experience – A hotel that utilises a robot receptionist or robotic cleaning staff. Robots that can handle routine cooking tasks and move luggage. The entrepreneur is not entirely replacing humans; they will more than likely replace the more mundane, least valuable work.
- Security, training and consultancy – This area could be huge for entrepreneurs. A robot of any design is essentially a set of cameras attached to a computer that is connected to the internet. The security issues for small businesses and personal users alike could be huge. Your robot, after all, will be recording everything it encounters. Who owns the data? Who has access to it, and can it be deleted? These will be vital things to ask your robotic consultant in the near future.
Final Thoughts
Entrepreneurs should be aware that all the talk and concerns about AI are masking a potentially wider threat around the corner: the threat of autonomous robots.
The combination of the two technologies could make it increasingly difficult for small businesses to compete.
Already, there are fully functioning paid-for services in robotaxis, delivery drones and personal house robots are in full development.
The new technology is likely to be expensive, and only the largest small businesses or large corporations are likely to be in the position to take advantage of the productivity savings.
However, the outlook is not all doom and gloom. Savvy entrepreneurs could take advantage of the new reality by aligning their businesses with the change rather than trying to fight against it.
Viable options could be Robot as a Service, where clients pay for a robot on a monthly subscription, robot security and consultancy services and robot servicing companies.
While all these services could also potentially be delivered by AI or robots themselves in this new reality, the human touch is likely to be more important than ever.
Are you ready?
Good luck!
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