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Human level hand dexterity certainly is a holy grail.

Dexterity without sight or sensation is pretty useless. Try finding a quarter in pocket full of change with gloves on.

Then add sight and sensation ... who said you couldn't do that?

The innovation of Sparrow is the computer vision combined with the hand. Not just the hand. That wasn’t explained well in the article.

Visual servoing and 'eye-in-hand' are not really groundbreaking in robotics, is there some novel/inventive aspect that Sparrow brings?

Or is it just taking existing tech and applying it in a real warehouse.

From a technical perspective, sure.

How Amazon is using this? Nah.