Forget Allen keys and wordless instructions. IKEA’s latest innovation comes with propellers and algorithms.

The Swedish furniture giant is taking to the skies—or at least the ceiling—with a fleet of drones powered by artificial intelligence (AI). Their mission is to tackle the chaos of inventory management in IKEA’s massive warehouses.

After a year of testing at its distribution center in Winterslag, Belgium, IKEA plans to roll out these high-tech helpers to more locations next year. This move could change the way retailers manage their inventory and potentially how consumers shop.

“Drones equipped with RFID and barcode scanners significantly improve inventory accuracy and reduce the time spent on inventory checks,” Robert Khachatryan, founder and CEO of Freight Right Global Logistics, told PYMNTS. “For example, Gather AI’s drones collect data 15 times faster than humans for certain tasks. Additionally, they can read 95% of barcodes and labels in warehouses, allowing managers to repurpose human cycle counters for more valuable tasks.”

What started as a single drone in Switzerland in 2021 has quickly grown into a fleet of over 250 drones flying over 73 locations in nine countries. This expansion suggests that IKEA is relying heavily on this aerial inventory solution.

“The IKEA drones use an artificial intelligence-based algorithm to identify and photograph product storage locations,” said Parag Parekh, Global CDO for IKEA Retail, in a press release. These mechanical scouts use a customized indoor positioning system to navigate the vast shelves, skillfully avoiding obstacles.

The rise of the warehouse drone

The aerial revolution is not limited to IKEA. According to Drone Industry Insights’ 2023 drone market report, the use of drones in warehouses is growing at a rate of 15.7% annually. Industry experts recognize the potential of this trend to transform retail operations.

This efficiency gain extends beyond retail. “In the manufacturing industry, drones significantly speed up tasks like barcode scanning and inventory tracking while reducing the risk of human error,” Shaun Wong, managing director of SLG Logistics, an international freight forwarder, told PYMNTS. “This increases efficiency in warehouses.”

For IKEA’s human workforce, the arrival of their robot colleagues will change the nature of warehouse work. Gone are the days of climbing ladders and straining to reach high shelves. Instead, employees can focus on tasks that require human intervention, such as customer service or solving complex problems.

In retail, drones are becoming the new tool for greater efficiency. Amazon has long been testing delivery drones, while Walmart experimented with inventory drones in 2016. In China, JD.com and Alibaba have been pushing the use of drones in e-commerce for years.

The economic equation: efficiency vs. employment

The economic impact of this trend could be significant. “Using drones in warehouses can lead to a significant reduction in labor costs by automating routine tasks such as inventory checks and warehouse management,” Khachatryan said. He adds a surprising environmental benefit: “Research from the World Economic Forum shows that drones have the potential to reduce energy consumption by up to 94% compared to traditional vehicles.”

However, the drone revolution also brings its challenges. “Because drones can complete tasks such as scanning inventory or checking higher shelves much faster than humans, labor costs will decrease as fewer workers are needed for repetitive tasks. This will offset the initial investment,” Wong points out. However, he warns: “There is a risk of job losses as some workers could lose their jobs due to automation. Companies will need to find a balance by potentially retraining employees for other tasks or managing a smaller workforce.”

Despite these concerns, the industry is moving forward at full steam. Khachatryan cites a Gartner report that predicts that “by 2027, 75% of companies intend to introduce some form of robotic automation in their warehouse operations.” This shift is already underway at IKEA, which is expanding its drone program to new locations, including its distribution center in Perryville, Maryland.

The future applications of these flying assistants will expand rapidly. “As drone technology advances, new applications will emerge, such as autonomous package delivery in large warehouses, monitoring storage conditions such as temperature and humidity, and even performing smaller maintenance tasks,” said Khachatryan.

Wong sees even more possibilities: “Drones could be used for security patrols, transporting small items through the warehouse or inspecting equipment. This would further streamline warehouse operations, reduce the need for manual checks and increase overall productivity.”

The environmental impact is also notable. Khachatryan points out that “electric drones and various warehouse robots are an integral part of Amazon’s strategy to achieve net-zero carbon emissions for all deliveries, with the goal of achieving 50% of this goal by 2030.”