What Most Startups Get Wrong About AI in the Supply Chain

AI and robotics are rapidly transforming supply chains, with autonomous mobile robots (AMRs) reshaping human-machine collaboration. Yet, many businesses struggle with adoption due to integration challenges and ROI concerns. Interwoven Ventures, co-founded by Dr. Erez Agmoni, backs AI and robotics startups driving these changes. In this Q&A, Agmoni shares insights on the evolution of automation, key challenges, and the future of AI in logistics.

Supply Chain 24/7: Can you discuss the evolution of AMRs and robot-human collaboration over the past decade?  

Erez Agmoni: Over the past 5-10 years, AMRs have evolved from basic automated guided vehicles (AGVs) to highly intelligent, AI-driven systems capable of dynamic navigation, real-time decision-making, and seamless human collaboration. Progress has been significant, from highly effective Kiva Systems, which continues to operate at Amazon, to Humanoids, which aims to support the supply chain. The latter has yet to reach full maturity. 

Advances in computer vision and AI have enabled robots to operate in unstructured environments, working alongside humans in warehouses, manufacturing, and logistics. We believe that the future of robots lies in their ability to work alongside people, adapting to multiple tasks rather than being confined to the single-purpose functions we still see today. Of course, integration with other systems and digital twins will drive next-level optimization and enhance efficiency. 

SC247: From your perspective, what are the biggest challenges companies face when integrating AI and Robotics? 

EA: Many businesses face challenges with multiple systems needing integration. Currently, each sits in isolation instead of being part of a cohesive, overarching strategy. Calculating ROI continues to be difficult. Unlike temporary labor, which can be scaled up or down based on demand, robotics investments require long-term commitment, thus making it harder to align cost savings with fluctuating business cycles. 

Dr. Erez Agmoni

SC247: AMRs are redefining human-robot collaboration. What industries are seeing the most significant adoption, and why?

EA: As advancements in AI and sensor technology are rolled out, supply chain, health care, and food production industries are all engaging with AMRs, driven by labor shortages, the need for operational efficiency, rising e-commerce demand, and enhancing human-robot collaboration.

SC247: Many logistics companies are still hesitant about AI-powered automation. What are the biggest misconceptions you encounter?

EA: Often, solutions miss the mark by not addressing the exact problem but just touching next to it. One of the things we are very proud of at Interwoven is the support we give to startups to help them gain a deeper understanding of real-world problems through our knowledge or experts in the field. That helps to create a better fit and more precise solution and ensure optimal adaptation. 

SC247: AI adoption in logistics and manufacturing is heating up. What specific innovations or trends do you see having the greatest impact in the next five years? 

EA: In logistics and manufacturing, AI-supported Digital Twins can enable adoptees to better visualize their environment, leveraging data to optimize operations and run simulations or “what if” scenarios. This technology is already being implemented on a small scale and is anticipated to accelerate rapidly within the next few years. Scaling it and connecting such systems to robotics will further enhance operational efficiency and improve decision-making capabilities within a few years. 

SC247: Interwoven backs companies leading the pack in AI and robotics. What qualities do you look for when deciding to invest in a startup? 

EA: We seek visionary problem-solvers who can change the world and are willing to work hard to achieve that. They possess an open mind and are willing to learn and adapt, whether they excel with technology but need industry insights and connections or vice versa. 

SC247: From an investor perspective, AI and robotics have had their hype cycles. What makes this moment different?

“Collaboration between humans, machines, and AI can lead to much more powerful solutions, enabling companies to minimize exceptions and achieve better utilization. This approach is complementary, not conflicting.”

EA: Few recent breakthroughs have made it much easier for technology to realize the value of AI and robotics. The high cost and shortage of labor have encouraged companies to implement AI and robotic innovations for business continuity and profitability. 

SC247: The rise of Industry 5.0 emphasizes human-centric automation. How do you see this balancing with the push for fully autonomous systems?

EA: Collaboration between humans, machines, and AI can lead to much more powerful solutions, enabling companies to minimize exceptions and achieve better utilization. This approach is complementary, not conflicting. 

SC247: As AI continues to evolve, ethical concerns around automation and job displacement remain hot topics. How should businesses and investors approach these challenges responsibly? 

EA: The best example is the ATM; when banks introduced them, there was concern that it would lead to job losses, but in reality, automating routine tasks allowed banks to reduce costs, open many smaller branches, and hire even more people than ever before. This is true in other industries. AI and robotics primarily replace temp workers that involve low-skilled, repetitive, and dangerous tasks that lead to inconsistent attendance. AI and robotics create many more jobs, both skilled and less skilled such as gig economy delivery and taxi drivers, without AI and robotics, those wouldn’t exist.

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