We saw this at Amazon too. There are three phases… in the first, you drop robots into brownfields that didn’t anticipate robotic automation. The wins are real, but harder to come by.
The second, you put robots into spaces that anticipated automation, easier with bigger results. The third phase, you design the operation to maximally exploit the robotic automation.
Amazon’s Gen12 building in Shreveport is an example of the third phase. Amazon claimed a 25% productivity improvement and 25% speed improvement over the next best building.
The advantages always compound as you learn to even better leverage new technology.
We talked about this 30 year cycle in my recent podcast with David Mindell.
If you've adopted AI at your company but haven't seen any tangible results, read this 1990 article: "The Dynamo and the Computer" by Paul David.
When electricity first arrived, factories that "adopted" it barely got faster. They just swapped the steam engine for an electric one and ran everything else exactly as before: same machine layout, same workflow, same management. Electricity in, no real gains out.
The most common mistake with any new technology is to drop it into the old organization and then declare the transformation done.
The real leap came decades later, when each machine got its own small motor. Suddenly machines no longer had to be lined up around one central drive shaft. They could be rearranged around the actual flow of work.
The productivity gains didn't come from electricity. They came from REDESIGNING THE ENTIRE FACTORY around it.
AI is the same. Bolting it onto your existing process gets you a faster steam engine. The payoff comes when you redesign the work itself.
(link to paper in comments)