Japanese Robot to Clock in at a Convenience Store in Test of Retail Automation

Telexistence's shelf-stacking avatar robot, designed to resemble a kangaroo, is seen during a photo opportunity ahead of its unveiling in Tokyo, Japan July 3, 2020. (Reuters)
Telexistence's shelf-stacking avatar robot, designed to resemble a kangaroo, is seen during a photo opportunity ahead of its unveiling in Tokyo, Japan July 3, 2020. (Reuters)
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Japanese Robot to Clock in at a Convenience Store in Test of Retail Automation

Telexistence's shelf-stacking avatar robot, designed to resemble a kangaroo, is seen during a photo opportunity ahead of its unveiling in Tokyo, Japan July 3, 2020. (Reuters)
Telexistence's shelf-stacking avatar robot, designed to resemble a kangaroo, is seen during a photo opportunity ahead of its unveiling in Tokyo, Japan July 3, 2020. (Reuters)

In August, a robot vaguely resembling a kangaroo will begin stacking sandwiches, drinks and ready meals on shelves at a Japanese convenience store in a test its maker, Telexistence, hopes will help trigger a wave of retail automation.

Following that trial, store operator FamilyMart says it plans to use robot workers at 20 stores around Tokyo by 2022. At first, people will operate them remotely - until the machines’ artificial intelligence (AI) can learn to mimic human movements. Rival convenience store chain Lawson is deploying its first robot in September, according to Telexistence.

“It advances the scope and scale of human existence,” the robot maker’s chief executive, Jin Tomioka, said as he explained how its technology lets people sense and experience places other than where they are.

The idea, dubbed telexistence, was first proposed by the start up’s co-founder, University of Tokyo professor Susumu Tachi, four decades ago.

Their company has received funding from technology investment company Softbank Group and cell phone service operator KDDI in Japan, with overseas investors including European passenger aircraft maker Airbus SE. It dubbed its robot the Model T, a nod to the Ford Motor car that began the era of mass motoring a century ago.

Its quirky design is meant to help shoppers feel at ease because people can feel uncomfortable around robots that look too human.

Escaping factories
Robots are still a rare sight in public. Although they can outperform humans in manufacturing plants built around them, they struggle with simple tasks in more unpredictable urban settings.

Solving that performance problem could help businesses in industrialized nations, particularly those in rapidly ageing Japan, cope with fewer workers. Firms hit by the coronavirus outbreak may also need to operate with fewer people.

Since the outbreak started, hotels, restaurants and even gas and oil companies have contacted Telexistence, Tomioka said.

“It’s difficult to tell now what impact robots might have in restaurants - it could mean fewer people, but it could also create new jobs,” said Niki Harada, an official at Japan’s Restaurant Workers Union.

Using human operators with virtual reality goggles and motion-sensor controls to train its machines slashes the cost of retail robotics compared with complex programming that can cost 10 times more than as the hardware and take months to complete, Telexistence says.

Although FamilyMart will still need humans to control its robots, operators can be anywhere and include people who would not normally work in stores, said Tomohiro Kano, a general manager in charge of franchise development.

“There are about 1.6 million people in Japan, who for various reasons are not active in the workforce,” he said.

Future telexistence robots could also be used in hospitals so doctors could perform operations from remote locations, predicted Professor Takeo Kanade, an AI and robotics scientist at Carnegie Mellon University in the United States, who joined Telexistence in February as an adviser.

It might take another 20 years before robots can work in people’s homes, however, he said.

“In order for robots to be really usable at home we really have to be able to communicate. The fundamental thing that is lacking is knowing how humans behave.”



Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
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Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP

Google-parent Alphabet on Wednesday reported quarterly profits that topped expectations, saying artificial intelligence has boosted every part of its business.

Alphabet's second-quarter profit of $28.2 billion -- on $96.4 billion in revenue -- came with word that the tech giant will spend $10 billion more than it previously planned this year on capital expenditures, as it invests to meet growing demand for cloud services.

"We had a standout quarter, with robust growth across the company," said Alphabet chief executive Sundar Pichai.

"AI is positively impacting every part of the business, driving strong momentum."

Revenue from search grew double digits in the quarter, with features such as AI Overviews and the recently launched AI mode "performing well," according to Pichai.

Ad revenue at YouTube continues to grow along with the video platform's subscription services, Alphabet reported.

Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year, according to the company.

"With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead," Pichai said.

Alphabet shares were up nearly 2 percent in after-market trades that followed the release of the earnings figures.

Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence and whether AI-generated summaries of search results will translate into fewer opportunities to serve up money-making ads.

The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age.

The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages.

However, advertising remains Google's financial bedrock.

"Google is doing well despite tariff headwinds and rising AI competition in search," said eMarketer principal analyst Yory Wurmser.

"It's also successfully monetizing AI Overviews and AI Mode, a good sign for the future."

Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Antitrust battles

Meanwhile the online ad business that generates the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.

During the summer of 2024, Google was found guilty of illegal practices to establish and maintain its monopoly in online search by a federal judge in Washington.

The Justice Department is now demanding remedies that could transform the digital landscape: Google's divestiture from its Chrome browser and a ban on entering exclusivity agreements with smartphone manufacturers to install the search engine by default.

District Judge Amit Mehta is considering "remedies" in a decision expected in the coming days or weeks.

In another legal battle, a different US judge ruled this year that Google wielded monopoly power in the online ad technology market, another legal blow that could rattle the tech giant's revenue engine.

District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers.

Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.

Google said it is appealing both rulings.