As artificial intelligence (AI) moves from digital interfaces into the physical world, a significant shift is occurring in how machines interact with the environment.
The next two years will be defined as “the years of the hand,” Dr. Illah Nourbakhsh, professor of robotics at Carnegie Mellon University and strategic advisor to the ROBO Global indexes at VettaFi, said during a recent webcast. Furthermore, this evolution in finger dexterity and complexity of control is set to unlock entirely new addressable markets for automation.
See more: ROBO Global 2026+ Outlook & Trends Report
For years, a significant bottleneck in robotics has been the inability to operate human-centric controls. Currently, automating legacy equipment — like harvesting machines — requires installing expensive, custom servo motors rather than simply having a robot operate existing controls. The opposable thumb is critical. It allows robots to use existing manufacturing processes and control systems, such as tools, without the need to redesign all the equipment in our world, according to Nourbakhsh.
The marriage of mechanical design and AI is driving this breakthrough. Modern systems use series elastic actuators that act like human muscles, providing a combination of strength, precision, and speed. These new motors act as shock absorbers. They allow robots to respond to changes in their environment and stop quickly to avoid hurting humans.
Additionally, these advanced fingers serve as sensors. AI systems enable robots to reason about force control. That then allows them to manipulate delicate objects with just the right level of tension. Whether it is turning a doorknob, using a screwdriver, or performing complex assembly line operations, Nourbakhsh believes that giving robots the ability to operate the same mechanical affordances as humans will fundamentally change the landscape of physical intelligence.
For investors looking to gain exposure to the AI driving this emerging opportunity, the ROBO Global Artificial Intelligence ETF (THNQ) may be worth consideration. THNQ tracks the ROBO Global Artificial Intelligence Index, focusing on the enablers and application providers that make physical AI possible.
For robotics and automation exposure, the ROBO Global Robotics and Automation Index ETF (ROBO) offers global exposure to the fast-growing industry. Furthermore, ROBO tracks the ROBO Global Robotics and Automation Index, which represents the global value chain of robotics, automation and enabling technologies.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for THNQ and ROBO, for which it receives an index licensing fee. However, THNQ and ROBO are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of THNQ and ROBO.
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