AI-powered robots offer new hope to German factories

HANNOVER

Humanoid robots are seen at the booth of Agile Robots SE during during a tour of the Hannover industrial trade fair for mechanical and electrical engineering and digital industries, in Hannover, northern Germany on April 20, 2026. (AFP)

A blue-eyed humanoid robot carefully opens a box and places a tool inside as a crowd of visitors watch the demonstration of "physical AI" skills at a major industrial trade fair in Germany.

Made by German startup Agile Robots, it was among a host of robots showing off their moves at the event, underlining hopes of a coming AI-powered boost for Germany's long-struggling factories.

Embedding the technology into industrial processes, where Europe already has deep expertise, is seen as a key route for the continent to catch up in the artificial intelligence race against the United States and China.

Such AI-boosted robots make it possible to "actually solve industrial problems", Rory Sexton, chief executive of Agile Robots, told AFP.

From next year, he added, the company plans to begin fitting out German factories, particularly those in the automotive industry, a crucial sector for Europe's biggest economy.

Artificial intelligence used for real-world, hands-on tasks, so-called physical AI, was in focus this year in Hanover at the world's biggest industrial technology fair, which brings together more than 3,000 exhibitors.

Chancellor Friedrich Merz visited the Agile Robots stand, where he talked to Zhaopeng Chen, the Chinese founder of the Munich-based startup.

In a speech at the fair, Merz threw his support behind the drive to encourage German manufacturers, many of whom still rely on traditional techniques, to step up their use of AI.

AI should be "embedded in the key sectors of our industry and especially" in small- and medium-sized firms, the backbone of the German economy, to create "industrial added value and high-quality jobs", he said.

But, like in many other industries, German manufacturers are playing catch-up against China when it comes to making humanoid robots.

Merz witnessed China's progress in the field first-hand during a visit to the country in February, when he saw displays of Chinese-made robots performing kung fu and boxing.

The maker of those robots, Unitree, and other Chinese manufacturers were also out in force at the Hanover fair, as they have been in previous years.

Still, Sexton of Agile Robots insisted that "we'll soon be able to do what [Unitree] are doing", and shrugged off such impressive public displays.

Rather than dancing or martial arts, Agile Robots is focused on "value-added tasks for industry," such as electronic wiring in cars or phone assembly, he said.

He emphasised that Germany offers an "ecosystem of suppliers" and "very strong expertise in mechanical engineering and automation", both crucial in the race for AI.

Companies are also hopeful about the technological developments: 58 percent of industrial firms surveyed by German digital business association Bitkom believe humanoid robots could help plug skilled labor shortages.