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Is AI in warehousing overhyped? Why practical automation matters more than robots
February 12, 2026
Spend any time reading warehouse or logistics headlines and you would be forgiven for thinking that robots are everywhere.
Autonomous vehicles gliding across vast fulfilment centres, AI systems making instant decisions at massive scale, and fully automated warehouses that barely seem to involve people at all…
For a small number of global enterprises, that picture is real. But for the vast majority of ecommerce and distribution businesses, especially SMEs, it is not even close.
And that gap between perception and reality is where a lot of confusion and misplaced pressure comes from.
Most warehouses are still human-led
Despite the noise around AI and robotics, most warehouses today are still run by people.
Industry research suggests that only around a quarter of warehouses globally have any meaningful level of automation, and fewer than ten percent use advanced automation such as robotics or AI-driven systems. That means the typical ecommerce or distribution warehouse is still human-centric, operating at a scale where physical automation often does not make financial or operational sense.
That reality matters, because it changes the question businesses should be asking.
The question is not, “Why aren’t we using robots?”
It is, “What is actually holding our warehouse back right now?”
Why robots are rarely the answer for SMEs
For smaller and mid-sized warehouses, the biggest challenges are rarely solved by robotics.
The cost and risk remain high, with long and uncertain payback periods. Warehouse size and order volume often do not justify the investment. Flexibility is harder to achieve with machines than with people. And operational complexity increases dramatically once robotics are introduced.
At the same time, many SMEs are still battling far more fundamental problems. Stock inaccuracies, picking errors, inefficient layouts, manual processes, disconnected systems…
When those basics are not under control, adding robots does not fix the problem. It often makes it harder to manage.
Automation is not just robots
One of the most damaging misconceptions in warehousing is that automation only counts if it involves machines moving around the building.
In reality, software-led automation often delivers far greater impact, far faster, and with far less risk, particularly for SMEs.
Simple examples include automatically selecting the right courier based on weight, destination, service level, or cost. Assigning accurate weights and dimensions to avoid mischarges. Suggesting purchase orders based on real sales data rather than gut feel. Automatically routing and prioritising orders so teams are not constantly deciding what to do next.
These are not flashy use cases, but they remove huge amounts of friction from daily operations. They reduce errors, cut admin time, and allow warehouse teams to focus on fulfilling orders instead of firefighting.
From paper to apps: reducing errors at the source
One of the biggest step changes many warehouses can make has nothing to do with AI.
It is simply moving away from paper.
Printed pick lists, handwritten checks, and manual updates create delay, ambiguity, and risk. Replacing them with mobile workflows and barcode scanning introduces validation directly into the process.
Barcode validation confirms the right item is picked every time. Stock updates happen instantly. Errors are caught before orders leave the building. Traceability and accountability are built in without extra effort.
For many businesses, this alone dramatically reduces mis-picks, returns, and customer complaints, without disrupting how the warehouse actually operates.
Smarter picking beats more people
Efficiency gains do not require robots roaming the floor.
Often, they come from organising work more intelligently.
A modern warehouse management system can optimise pick routes to reduce unnecessary walking. It can batch and wave orders to improve throughput. It can balance workloads across the team and reduce congestion in busy areas.
In many warehouses, simply reducing walking distance delivers a measurable improvement in productivity almost immediately. No hardware required.
Where AI does make sense for SMEs
AI does have a role to play in warehousing, but it is most effective when it supports decisions rather than trying to replace people.
Used sensibly, it can enhance reporting and visibility, improve demand forecasting, support stock optimisation, and highlight exceptions or anomalies before they become costly problems.
These applications improve control and insight without introducing the cost, risk, and complexity of physical automation.
That is where AI quietly delivers value, even if it does not make for dramatic videos.
Control before complexity
The warehouse of the future may well be heavily automated. But the warehouse of today, particularly for SMEs, still depends on people, clear processes, and reliable systems.
Before chasing AI-driven robotics, most ecommerce and distribution businesses will see far greater returns by investing in fundamentals. A robust warehouse management system. Everyday process automation. Mobile and barcode-enabled workflows. Clear, data-driven visibility.
In almost every case I have seen, bringing control and consistency to operations beats chasing the latest hype.
Talk to someone who’s been there. If you’d like to sense-check your numbers or walk through how StoreFeeder can help, drop me a message. I love solving these problems.
Or get in touch for a demo, our team of experts in WMS and eCommerce are always on hand to show you how we can help your business overcome the same issues.
Book a demo of StoreFeeder today.
Ian Dade - Operations Manager at StoreFeeder
