US-based United Parcel Service Inc. (UPS) is in discussions with robotics startup Figure AI Inc. to potentially integrate humanoid robots into its logistics operations.

Talks began last year and have continued in recent months, though the specific tasks the robots would perform have not been disclosed.

In February, Microsoft-backed Figure AI shared a video of its 5-foot-6-inch humanoid robot. It was sorting small parcels beside a conveyor belt, hinting at a possible collaboration with a logistics firm.

UPS has been investing in automation, using robotic arms and AI software, and has worked with Dexterity Inc., a startup specializing in industrial robotic systems.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ UPS’s automation journey shows strategic progression to humanoid robots

The company’s interest in Figure AI’s humanoid robots represents a natural evolution in UPS’s long-standing automation strategy, not a sudden pivot.

UPS has been systematically building its technological foundation, investing approximately $1 billion annually in technology aimed at efficiency and customer service enhancements 1.

This groundwork includes the deployment of AI-driven systems like ORION (On-road Integrated Optimization and Navigation), which saves an estimated 10 million delivery miles annually, and Network Planning Tools that are expected to save $100-200 million through optimized package flows 1.

The company has already demonstrated commitment to physical automation through its $316 million investment in the Louisville Centennial Ground Hub, which tripled the facility’s size and increased processing capacity from 40,000 to 85,000 packages per hour 2.

UPS’s existing partnership with Dexterity Inc. for industrial robots with “human-like” finesse shows they’ve been strategically exploring advanced robotics before these Figure AI discussions began.

2️⃣ Humanoid robots address specific logistics industry pain points

The potential UPS-Figure partnership reflects broader industry challenges, particularly the widespread labor shortages affecting logistics operations.

Research indicates that 76% of logistics businesses report workforce shortages, creating a significant operational challenge that humanoid robots are specifically designed to address 3.

These robots can perform tasks requiring human-level dexterity and precision—like the parcel sorting shown in Figure’s video—which traditional fixed automation systems cannot easily handle 4.