How policy changes could accelerate automation
As we enter 2026, automation—spanning industrial robotics, AI-driven processes, and agentic systems—stands poised to reshape economies, boosting productivity amid labor shortages and global competition. Targeted policy interventions can significantly speed adoption by lowering barriers, sharing risks, and aligning incentives with national priorities like reshoring and sustainability.
Key Policy Levers to Drive Acceleration
Financial Incentives and Tax Reforms Governments can deploy tax credits, accelerated depreciation, and direct subsidies to offset high upfront costs of automation equipment. For instance, expanding R&D tax credits to explicitly cover AI, robotics integration, and workforce training—building on existing U.S. frameworks like Section 179 deductions and bonus depreciation—could spur investment. Recent U.S. manufacturing trends show tariffs and trade policies already accelerating reshoring and automation spending, with record construction in facilities leveraging robotics. States competing with AI-specific investment credits (rather than labor-based ones) could further catalyze deployment in data centers and factories.
Reskilling and Workforce Transition Support Automation's benefits risk being uneven without policies addressing job displacement. Funding national reskilling programs, apprenticeships, and "AI Adjustment Assistance" (modeled on trade adjustment aid) can ease transitions, encouraging firms to automate boldly. Proposals like tax incentives for retraining displaced workers or expanded unemployment supports during reduced hours would build public acceptance and accelerate uptake.
Regulatory Streamlining and Standards Deregulation—such as faster permitting for semiconductor and automation facilities—combined with open standards (e.g., Policy-as-Code in infrastructure) reduces friction. Balanced AI governance that avoids over-regulation while promoting safety can prevent slowdowns, as seen in 2025-2026 state laws focusing on deepfakes and ethics rather than broad bans.
Public Procurement and Demonstration Effects Governments leading by example—prioritizing robotics in public infrastructure or agencies—can de-risk private adoption, creating a "double benefit" of efficiency gains and market signals.
The Broader Impact
Strategic policies could push U.S. automation adoption from lagging (e.g., China installs far more robots) to leading, enhancing competitiveness while mitigating inequality through redistribution or targeted supports. Without them, adoption remains uneven, concentrated in large firms. With them, 2026 could mark an inflection point: higher productivity, resilient supply chains, and inclusive growth in an AI-accelerated era. Policymakers must act decisively to harness automation's potential rather than let market forces alone dictate the pace.
