Honeywell CEO Details AI Strategy for Industrial Automation

Artificial intelligence is expanding from software into the physical infrastructure that powers factories, hospitals, data centers, and energy systems, creating new investment considerations around which companies possess the industrial data and expertise to capitalize on the transition.

Honeywell Technologies Chairman and CEO Vimal Kapur outlined his company's approach to this shift in a recent episode of T. Rowe Price's "The Angle" podcast, speaking with Eric Veiel, the asset manager's president, co-head of Global Investments, and chief investment officer. The discussion covered Honeywell's business transformation, industrial automation prospects, and AI's potential to make complex facilities increasingly autonomous, according to details first reported by citybiz.

Splitting Honeywell into three businesses

A key focus of the conversation was Honeywell's planned separation into three distinct companies. Kapur argued that the split would give each business greater strategic focus and allow them to pursue market opportunities more independently. For investors, the restructuring offers a case study in how large industrial firms can use portfolio changes to sharpen operating priorities while positioning individual units around different growth trajectories.

Physical AI presents unique challenges

Kapur sees substantial potential for AI to change how physical facilities operate, including hospitals, semiconductor fabrication plants, data centers, and energy infrastructure. However, applying AI in industrial environments differs fundamentally from deploying it for digital tasks. Industrial systems depend on physical equipment, specialized processes, and operational constraints where reliability and safety are critical.

According to Kapur, access to industrial data and deep knowledge of specific industries will be essential for successful AI deployment in these settings. Agentic AI systems could eventually perform a larger share of operational work, helping customers address skilled worker shortages and improving productivity by automating tasks that currently require specialized employees.

Why it matters

The conversation highlights a less-discussed dimension of the AI buildout: the physical infrastructure required to support it creates its own automation opportunities. Data centers and semiconductor manufacturing facilities are complex industrial environments that need sophisticated systems to manage buildings, power, cooling, and other physical operations—precisely the domain where companies like Honeywell operate.

"Vimal brought a valuable perspective to several themes investors are watching closely, including how companies can create value through greater strategic focus, the growing infrastructure demands associated with AI, and the potential for physical AI to transform industrial automation," Veiel said. He added that the conversation underscores the continuing importance of data, domain expertise, and human judgment as companies bring AI into complex industries.

The episode marks the 17th installment in T. Rowe Price's C-suite podcast series, which launched in 2024. Previous guests have included NVIDIA CEO Jensen Huang, Ford CEO Jim Farley, Intel CEO Lip-Bu Tan, Goldman Sachs CEO David Solomon, and Citi CEO Jane Fraser. Baltimore-based T. Rowe Price managed $1.87 trillion in client assets as of July 31, 2026.

Details of the conversation were reported by citybiz.