AI is redefining competition in warehousing: the playing field gets levelled
October 6, 2025
As AI and automation become increasingly more accessible across the industry - for any player, big or small, we’re witnessing a transformative shift. What is now the exclusive domain of industry giants will become within reach for smaller operators. Advanced tools like autonomous robots, computer vision systems or AI-based analysis become more and more accessible, leveling the playfield.
There are many things that keep these new technologies out of touch now - starting with the price and ending with the skills and mindset required to embrace them - but this will change. AI is democratising opportunities.We see this in many warehouses’ transition from a “Blind” stage - where everything is opaque and done manually, to more advanced stages, like the “Observable”, “Intelligent” and even “Adaptive” ones, a transformation we’ve talked about in detail in one of our recent whitepapers.
This article explores how, in a world where more and more operators have access to AI tools and robots, new factors are emerging as critical drivers of success.
AI narrows the gap
AI changes the dynamic for smaller and mid-sized warehouses, enabling them to access the same resources and processes as bigger players.
The market for AI in warehousing is estimated to reach US$42.9 Billion by 2030, and 38% of logistics companies already use AI solutions, showing impressive market opportunity.
There are new, flexible, more affordable technology models that indicate that automation is - or will soon be - not a luxury, but a norm. In fact, 77% of organisations are “serious about automated warehouse systems”. Solutions like Dexory’s provide real-time visibility in warehouses of any size, using robots and AI to create live digital twins and thus enabling enhanced performance.
AI and robotics can act as great equalizers, giving smaller operators access to the same opportunities for workflow optimisation as larger warehouses. We’ve seen this dynamic before, with barcodes - once a breakthrough, they are now indispensable and present everywhere.
What is different this time is the ease of access: AI-powered tools are increasingly more affordable and their adoption is supported by new business models, such as Robotics-as-aService (RaaS). This reduces the risk and also, the costs associated with investing in a new technology - warehouses don’t necessarily need to build their own software or hardware solutions.
At the same time, AI helps leveling skill gaps, making advanced know-how and automations more accessible to anyone. Smaller warehouses can benefit from the same new capabilities as bigger ones, thanks to AI.
Last but not least, these AI-based solutions can be tested with relatively low barriers, which means that operators can experiment, learn and adopt them incrementally, without waiting for too long to see the first results.
In this context - where innovation in logistics happens fast and competitors constantly look at how to make their processes more efficient - technology adoption must happen fast. Nonetheless it’s not just about implementing new tech, but about fostering a culture where continuous learning, development and improvement are crucial.
The time to innovate is now
Forward-thinking warehouses look for AI-driven tools and robotics to pilot new programs that help them better manage inventory, delivery or understand how fluctuations might impact their stock based on previous scenarios. Quick iterations - they try new systems, learn, fail, standardise, start again - help them stay agile and one step ahead.
There are many operations that can be improved through the use of AI-enhanced tools and robotics, in any warehouse.
Autonomous robots and automation can be used to navigate aisles, scan inventory and generate warehouse mappings at speed - for example, data gathering robots can scan up to 10.000 storage locations per hour, feeding the data to a digital twin of the warehouse.
Robots can also be used to take over time-consuming, repetitive or even dangerous tasks for humans. Warehouses use them to transport items, do the heavy lifting and free up time for workers to focus on higher-value adding tasks.
In warehouses that are more Intelligent and Adaptive, for example, AI is used to support decision making or even make decisions without human support. Using such a technology can speed up data interpretation and lower the risk of human delays or misinterpretation, giving warehouses an important competitive edge. Predictive analytics can prevent costly overstocks or stockouts, as well as better planning and testing digitally for various scenarios.
Leveraging these types of solutions fast can be a clear differentiator. While access to AI and new technologies get democratised, an important winning strategy is early testing and adoption.
What is there beyond technology?
As more and more warehouse operators improve their processes with AI, it becomes clear that beyond adding new tools to the tech stack, a more holistic strategy is needed to stay competitive.
In the AI era, warehouses will distinguish themselves through the intelligent solutions they use, how they use the data they gather, but also through their ESG policies, customer experience, data safety and workforce relationships.
- Sustainability (ESG)
Sustainability has become a key priority in many industries, including warehousing. Companies need to adopt greener approaches as the EU, for example, is committed to becoming climate-neutral by 2050.
Warehouses need to become more sustainable and integrate environmental considerations deep into their operations. This means they need to optimise energy consumption, reduce waste and inefficiency, better manage their stocks and logistics to lower emissions, use electric fleets or predictive analysis to reduce dwell time for their trucks. Other rules, such as the Packaging and Packaging Ware Regulation, emphasise that warehouses should pay more attention to their packaging solutions and the materials they use in this scope.
Green building design and better technology choices - better construction materials, smart HVAC systems, robots that operate in the dark - can also contribute to reducing waste and negative carbon footprint, while also cutting down operational costs.
Digital twins also play an important role in achieving ESG goals. Paired with AI, digital twins can track, analyse and understand how energy is consumed and support managers in making more informed decisions on waste management. Reports show that “digital twins can help to reduce the greenhouse gas emissions and carbon footprint of an existing building by up to 50 per cent, alongside cost savings of up to 35 per cent.” (source)
- Workforce and culture
Adopting greener practices is not enough - workforce training, clear policies and even opportunities for upskilling can make or break an entire green strategy.
Furthermore, as more technology is brought into the warehouse, open communication and change management are key in keeping a happy, productive workforce. Team morale, company values, work conditions and the support workers get, combined with clear understanding that technology enhances people’s work, are critical to a warehouse’s success in the long term.
Last but not least, AI-based technologies can also increase workforce satisfaction, by using intelligent tools to provide both a safer environment, but also growth opportunities. AI can be used for personalised development paths, for employer sentiment analysis or in the hiring and employer branding processes.
Concerns may arise regarding employment, but it’s not the case: around 300.000 new logistics jobs are created each year.
- Customer and partner experience
In a very dynamic ecosystem where new technologies emerge facilitating new opportunities, a warehouse relationship with its partners and customers remains critical. AI can be used to improve customer experience, by providing, for example, more transparent, real-time information on inventory or order status.
A positive example comes from global leader Maersk: by using digital tools to increase end-to-end visibility of inventory across warehouses, Maersk aims to offer its customers “fulfillment tailored in real-time in response to changing demands”.
Customer experience is essential in a market with so many choices, so staying agile and accurate in fulfillment can become a competitive differentiator. Additionally, data sharing and integration across the supply chain - building the adaptive supply chain - can improve supplier and partner relationships. An AI-powered warehouse could update a carrier with optimal pick-up times, for example, ensuring increased efficiency.
- Cyber security and privacy
As warehouses rely more and more on connected systems, the need for robust data governance and responsible adoption is essential.
This can be a critical challenge- a 2025 study showed that 44% of supply chain and operations leaders reported data issues as a major reason why their tech investments failed to fully deliver expected results. In 2024, France fined Amazon “for ‘excessively intrusive’ monitoring of warehouse staff”.
This means that in order to keep up with tech innovations and ensure data security and privacy, warehouses should choose trusted providers and build strong protocols. It’s equally important to make sure they prioritise transparency and accountability, to avoid unintended biases or breaching GDPR regulations.
New systems shouldn’t just be efficient, but also secure, fair and aligned with the company’s values.
Conclusion: thriving in the AI-era
The rise of AI and robotics is reshaping the warehouse landscape - what was once reserved for industry giants is now within reach for operators of all sizes. AI acts as an equaliser, democratising access to technology and lowering barriers to adoption through new models like Robotics-as-a-Service (RaaS).
But to truly compete, warehouses will need more than just AI tools. Success will depend also on early testing and adoption, building a strong and sustainable culture, and investing in data security, transparency, and customer experience.
This holistic approach will define the warehouse of the future, allowing any warehouse to thrive in this exciting era.