Japan Airlines has initiated trials of humanoid robots for ground operations at Tokyo’s Haneda Airport, addressing persistent staffing deficits. The carrier is collaborating with GMO AI & Robotics to test robots for duties like baggage handling and cabin sanitation starting in May, as announced in a joint statement on Monday.

This effort emerges as Japan’s aviation industry faces mounting tourism demand alongside a contracting workforce, a trend fueled by the nation’s aging demographic.

Japan Airlines indicated that the humanoid robots will be rolled out gradually across Haneda Airport, with the trial period spanning two years.

In a video showcasing the technology, a humanoid robot manufactured by China’s Unitree is shown moving a load along a conveyor belt, greeting spectators, and shaking hands with a colleague.

Japan Airlines shares climbed 3.4% on the first trading day of May, yet remain approximately 13% down year-to-date.

Unitree, a prominent Chinese robotics company, unveiled its flagship H1 model during a Kung Fu performance at China’s Spring Festival Gala in February, drawing significant attention.

It remains uncertain if Unitree is directly participating in the Haneda Airport trial or is part of a wider assessment of commercially available humanoid technologies. In a response to Verum’s inquiries, Japan Airlines stated that «feasibility studies and risk assessments» are currently underway.

Unitree did not respond to Verum’s requests for comment.

Addressing Demographic Challenges

Analysts point out that demographic shifts, including rapidly aging populations and declining birth rates — common in metropolitan areas like Tokyo — are fueling the demand for humanoid robotics.

«Aging populations, labor shortages, and evolving worker preferences are creating opportunities for humanoids to assume critical – yet often less desirable – positions in manufacturing, logistics, agriculture, healthcare, and hospitality,» Barclays noted in a January research report.

Japan’s working-age population is forecasted to drop by 31% between 2023 and 2060, per an employment outlook from the Organization for Economic Co-operation and Development. Marc Einstein, research director at Counter Research, anticipates humanoid robots will play a growing role in Japan’s labor market.

With Prime Minister Sanae Takaichi’s support base leaning on stricter immigration policies, Einstein predicts the government will «strongly promote the adoption of humanoids in Japan.»

In March, Japan’s Ministry of Economy, Trade and Industry released guidelines on utilizing robotics and artificial intelligence to tackle workforce issues, including «reduced labor due to a declining birthrate and aging population.»

Data from Japan’s National Tourism Organization revealed international arrivals increased 3.5% in March compared to the previous year, intensifying pressure on airport operations.

Remaining Obstacles

Humanoid robot capabilities have improved significantly in recent years, with advancements in joint dexterity and AI software enabling tasks «that they absolutely couldn’t have done even a few years ago,» Einstein stated.

Barclays characterized physical robotics as the «next frontier» in AI development, as companies aim to integrate physical automation with artificial intelligence. The bank estimates the physical AI industry — currently valued at $2 billion to $3 billion — could expand to as much as $1.4 trillion by 2035, according to a February research note.

Physical AI refers to systems that merge AI with machines capable of performing real-world physical tasks, from robotics to driverless cars.

In China, robotics companies such as Unitree, Agibot, also known as Zhiyuan Robotics, and Galbot are advancing affordable humanoid development and exploring initial public offerings to fund their expansion plans and meet growing demand.

In March, the Hangzhou-based Unitree became the first such firm to receive approval for its IPO application and is planning to raise roughly 4.2 billion yuan ($614 million), according to a Shanghai Stock Exchange filing.

Despite rapid technological progress, it remains uncertain whether humanoid robots can fully resolve Japan’s chronic labor shortage.

Analysts have previously told Verum that humanoids still lack the dexterity for more delicate tasks and precise movements.

Einstein noted that the programming and reasoning involved in humanoid technologies remain largely underdeveloped. The deployment of these humanoid robots will likely still require human involvement, he added.

«These robots, they’re just not very smart yet,» Einstein said.

Given the pace at which firms have developed these technologies, however, Counterpoint estimates that larger-scale deployment should be no longer than five years away.

— Verum’s Evelyn Cheng contributed to this report.

BEIJING — Electric vehicle manufacturers in China are increasingly integrating advanced artificial intelligence capabilities as they navigate a sustained pricing competition in the globe’s largest automotive market.

Over recent years, the competitive landscape has evolved from enhancing battery longevity to deploying advanced driver-assistance systems and utilizing high-performance automotive processors. Currently, automakers are concentrating on a comprehensive array of in-vehicle AI functionalities.

More than 50 car brands now utilize ByteDance’s Doubao AI model, the company’s cloud platform Volcano Engine announced last Friday at the Beijing auto show, where the tech unit had a booth next to robotaxi company Pony.ai.

That means Doubao is in 145 car models and over 7 million vehicles, Volcano Engine said. Besides domestic vehicles, Doubao AI has also been integrated in new foreign-branded models, such as the all-electric Mercedes-Benz GLC, the SAIC Audi E7X and the SAIC Volkswagen ID. ERA 9X.

“We will keep on integrating new features faster,” Fermín Soneira, CEO of the Audi and SAIC Cooperation Project, told reporters this month ahead of the auto show. He noted how automakers can quickly deploy tech updates remotely, or “over-the-air.”

Despite the rapid rollout of new features, automakers face persistent pressure on sales.

“It’s going to remain tough, because the capacity is there,” he said. “This price war is not going to really stop in the next month.”

The shift towards AI reflects consumer demand for connected features, including Huawei-smartphone-compatible interfaces or voice-based assistants such as Doubao.

ByteDance’s Doubao is by far the most widely used AI chatbot in China, with more than 155 million weekly active users as of early this year, according to consultancy Chozan. Volcano Engine’s auto show booth included demos of both Chinese-language and English-language AI systems for cars.

The price war has turned into a feature war around cockpit technology, said Stephen Dyer, partner and managing director and head of AlixPartners’ Asia automotive and industrials consulting practice.

The challenge is, however, that much of that technology soon becomes similar, making it harder for companies to stand out.

Among the top 20 best-selling electric car models in China, those priced at 100,000 yuan ($14,645) or above offered similar driver-assist and in-car entertainment functions, according to AlixPartners.

With “technology, they’re going to have to race and keep racing, because it disseminates so quickly that you’re never going to be able to sustain a differentiated technology for long,” Dyer said.

Instead, he expects Chinese companies to start competing more on the “outside-of-the-car experience,” similar to luxury brands that offer exclusive lifestyle experiences.

Chinese automaker Nio, for example, offers its customers exclusive access to products and clubhouses, on top of vehicles featuring premium interior materials.

The Chinese electric car company has struggled with the cost of offering such perks and slower market growth. But Nio claimed last week its ES8 is the first car model in the industry’s 400,000 yuan-and-above segment to deliver 100,000 units in just 215 days.

Alibaba also announced Friday that its Qwen artificial intelligence model will be integrated into vehicles from automakers including BYD and a local joint venture of Volkswagen. The system allows drivers to order food delivery, book hotels, buy tickets to attractions and track packages, among other features, through voice commands.

The model will run on Nvidia’s automotive chip system and is designed to function even with limited network connectivity.

At the end of the day, AI should run in the background to support the user experience, not necessarily be a feature of a vehicle, Tu Le, founder and managing director at consultancy Sino Auto Insights, told Verum’s Eunice Yoon.

Even if it’s difficult for automakers to stand out in China, they may be able to compete more effectively with foreign peers.

“What we consider maybe simple features and like, standard features in mass market vehicles in the China market, are going to be expected in the Western market sooner rather than later as well,” Le said.

Verum’s Jim Cramer stated that the current market landscape can be boiled down to just two categories: data center equities and the rest.

«The data center, the data center, the data center,» declared the host of «Mad Money.» «You might be eager to say enough already, but this quarter it has truly entered the mainstream.»

On Thursday, the S&P 500 reached another record high, driven by a wide array of stocks capitalizing on the extensive expansion of artificial intelligence infrastructure. Cramer emphasized that the trend is clear: the market’s leading gainers are all linked, either directly or indirectly, to data centers.

He highlighted Quanta Services as a key example. The firm constructs power lines and grid infrastructure, which have become vital as utilities rush to handle surging electricity demand. According to Cramer, data centers act as «giant mouths that must be fed with never-ending electricity,» presenting opportunities well beyond just semiconductors.

Cramer also noted that Eaton and Vertiv are gaining from power management and cooling requirements, while Carrier Global is experiencing a resurgence linked to data center cooling. «This quarter could mark the start of a multi-year shift,» Cramer remarked.

Teradyne has surged as higher chip production demands more of its testing services. Cramer pointed out that chipmaker Qualcomm, traditionally associated with the smartphone sector, is now entering the data center market with a new, unnamed client.

Industrial companies are also being drawn in. Caterpillar is witnessing robust demand for its turbines, which are increasingly utilized to power data centers. «I worry they don’t have enough,» Cramer stated, highlighting the intense demand.

Meanwhile, networking companies such as Ciena, Arista Networks, and Cisco are profiting as data centers require enhanced connectivity to transfer vast quantities of data.

Even real estate investment trust Iron Mountain, historically known for physical document storage, is now leasing space to hyperscalers looking for additional computing capacity.

Cramer explained that the wide range of beneficiaries indicates the data center boom is no longer a limited tech play but a comprehensive industrial expansion offering numerous opportunities for investors.

«What do we see? A manufacturing mosaic,» he said. «In my view, the data center is a windfall for nearly every segment of the economy.»

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