The rise of autonomous robotics: transforming industries and risk management

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THE EVOLUTION of robotics has been fascinating, beginning with the introduction of robots in the 1960s. Initially deployed in manufacturing plants, particularly within the automotive industry, these early robots were designed for repetitive, high-volume tasks in controlled environments. “Yesterday’s robots,” as Andrew Zarkowsky, head of AI underwriting at The Hartford, refers to them, were programmed to perform the same task over and over with precision. However, today’s robots have moved far beyond these constraints. They are mission-driven and autonomous, leveraging artificial intelligence (AI) and sensors to interact with their surroundings. “Modern robots can quite literally see, hear, and touch,” says Zarkowsky. “They’re not pre-

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“You need risk professionals who understand both the technology and the risks involved. This dual understanding is essential for assessing the full impact of introducing autonomous robots”

Andrew Zarkowsky, The Hartford

AI enables robots to process and respond to sensory data, facilitating tasks such as identifying and handling objects. Zarkowsky elaborates, “AI is really central to autonomous robotics. The robot needs to understand what it can see, hear, or touch, which involves complex algorithms and computing power.” He describes the intricate process of teaching a robot to perform seemingly simple actions, such as picking up a box. “You have to first understand what ‘pick up a box’ means, identify the box using vision, position yourself correctly, and adjust your grip based on the box’s weight and size. It’s about mimicking the human brain’s ability to process and respond to information.”

Imagine a grocery store where these robots can mop and clean continuously. Integrating generative AI technology, these robots don’t just clean; they also monitor the environment. If there’s a spill, they detect it and clean it up immediately. From a risk-management perspective, this means spills are addressed more quickly, reducing potential hazards and benefiting everyone involved. The integration of autonomous robots introduces both new opportunities and challenges for risk management. One of the primary risks associated with autonomous robots is their potential to malfunction or be misused. Zarkowsky emphasizes the importance of understanding both the technology and it’s practical applications. “You need to have the right technologists who understand the technology and dedicated resources from the business side. In the world of autonomy, you really need to understand the technology

and the business use of these robots. It’s about having both sides of the equation come together to solve the problem effectively.” Autonomous robots have the potential to reduce certain risks while introducing new ones. Zarkowsky highlights the example of robotic dogs used to monitor hazardous materials. “Instead of a worker having to go into an area that potentially is hazardous, you’re sending a robot, which reduces risk. However, you also need to understand if the robot can do a job as good as a human can or if it introduces new risks.” He also discusses the complexities involved in programming robots for specific safety measures. “If you have a robot that is designed to stop within two feet of anything but the warehouse’s design requires it to stop within one foot, you might end up reprogramming it. This could lead to unforeseen risks if the robot was not designed to operate safely within those new parameters.”

Effective risk-mitigation strategies are essential for businesses using autonomous robots. Zarkowsky recommends starting small and gradually expanding the use of robots to better understand their impact on operations. “I’ve worked with companies that start their robots in areas where no humans are allowed at first. This phased approach helps identify potential risks and allows for adjustments to be made before fully integrating robots into operations.” Training and facility design are critical components of risk management. “You need to train humans who will be working with the robots and design facilities to accommodate them safely. For example, ensuring that robots don’t interfere with sprinkler systems or other safety mechanisms is crucial.”

Zarkowsky does caution that privacy and information security are significant concerns with autonomous robots, given their extensive use of sensors to collect data. Zarkowsky advises businesses to consider these aspects carefully. “Robots capture a lot of information through their sensors, which has both positives and negatives. On one hand, you can use this data to improve safety and operations. On the other hand, you need to ensure that capturing this information is permissible and doesn’t violate privacy regulations.” He suggests implementing clear policies and guidelines for data collection and use. “Businesses need to think through how much information robots are capturing and whether it’s necessary. Clear policies can help manage these risks effectively.”

Over the next decade, rapid technological advancements will cause significant disruptions in the insurance industry. Zarkowsky emphasizes, “Each step of the way, you’re considering risk and risk management, anticipating potential issues, and thinking about how safety features will operate. “That’s what’s kept me at Hartford, their willingness and desire to stay on the cutting edge of technology,” Zarkowsky says. “Insurance traditionally focuses on using the past to predict the future. However, with technology, the past doesn’t necessarily help predict the future because technology changes so rapidly. Insuring technology involves anticipating the future and then figuring out how to insure it, which is challenging but, in my opinion, a fun problem.”

Understanding the risks and rewards

Addressing privacy and information security concerns

Published July 8, 2024

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“Modern robots can quite literally see, hear, and touch. They’re not pre-programmed for a single repetitive task. Instead, they adapt to their environment and can perform a variety of tasks”

Andrew Zarkowsky, The Hartford

programmed for a single repetitive task. Instead, they adapt to their environment and can perform a variety of tasks, such as building a product or emptying a truck, with a level of flexibility and adaptability that was previously unimaginable.” As these advanced robots become more prevalent, the need for effective insurance and risk- management strategies becomes increasingly critical. Programmable, autonomous manufacturing robots, logistics robots, and delivery robots are set to become commercially viable within the next decade. Insurance carriers and employers must understand how the growing presence of robotics in daily life and various industries will shift risk liabilities, alter customer expectations, expand the need for specialized risk management, and create opportunities for new products.

The role of AI in the creation of autonomous robots

If a robot thinks a light box is heavy, it might crush it, and if it thinks a heavy box is light, it could topple over. This process involves using multiple senses. The human brain excels at sorting information, and for robots to function effectively, they must understand their surroundings in a similar way.

Implementing risk-mitigation strategies

Zarkowsky underscores the importance of collaboration between technologists and risk professionals in managing the risks associated with autonomous robots. “You need risk professionals who understand both the technology and the risks involved. This dual understanding is essential for assessing the full impact of introducing autonomous robots.” He also stresses the need for continuous evaluation and adjustment of risk-management strategies. It’s crucial to include training programs to help humans working with robots feel comfortable and prepared.

The information provided in these materials is intended to be general and advisory in nature. It shall not be considered legal advice. The Hartford does not warrant that the implementation of any view or recommendation contained herein will (i) result in the elimination of any unsafe conditions at your business locations or with respect to your business operations, or (ii) be an appropriate legal or business practice. The Hartford assumes no responsibility for the control or correction of hazards or legal compliance with respect to your business practices, and the views and recommendations contained herein shall not constitute our undertaking, on your behalf or for the benefit of others, to determine or warrant that your business premises, locations, or operations are safe or healthful or are in compliance with any law, rule, or regulation. Readers seeking to resolve specific safety, legal, or business issues or concerns related to the information provided in these materials should consult their safety consultant, attorney, or business advisors. All information and representations contained herein are as of June 2024. The Hartford Financial Services Group, Inc. (NYSE: HIG) operates through its subsidiaries, including the underwriting company Hartford Fire insurance Company, under the brand name The Hartford® and is headquartered in Hartford, CT. For additional details, please read The Hartford’s legal notice at www.thehartford.com.

Singular task

Precise environment

High volume

Stationary

The evolution of robots

Autonomous

Mobile

Collaborative

Mission-driven

Higher variety

Computing power

Low- / no-code software

Availability of data

Advancement in sensing capabilities

What’s changed with today’s robots?

Yesterday’s robots

The evolution of robots

Today’s robots

Computing power

Low- / no-code software

Availability of data

Advancement in sensing capabilities

What’s changed with today’s robots?

Computing power

Low- / no-code software

Availability of data

Advancement in sensing capabilities

What’s changed with today’s robots?