Honeywell Chairman and CEO Vimal Kapur said AI is poised to redefine automation by turning operational data into actionable insights [1].

This strategic shift comes as industrial sectors face critical workforce gaps. By integrating physical AI, Honeywell aims to mitigate labor shortages and improve efficiency across its global operations.

Speaking at the company's investor day in New York City on June 11 [1], Kapur said the company is transforming into a focused automation company. He said AI is accelerating industrial automation and helping companies preserve workforce knowledge while strengthening energy resilience [2].

Kapur addressed the systemic challenges facing the global economy during the event. He said labor shortages are a problem that is coming for society and AI can help [3].

The company is pursuing growth through a combination of innovation, disciplined mergers and acquisitions, and portfolio simplification. As part of this reorganization, Honeywell intends to split into three industry-leading companies focused on automation, aerospace, and performance materials [4].

This restructuring is designed to allow each entity to operate with greater agility. The move follows a series of interviews earlier this year, including a discussion on May 13 regarding the role of AI in unlocking new growth opportunities [2].

Kapur said the goal is to create a more streamlined organization that can better leverage AI to improve decision-making and operational output [1].

“AI is poised to "redefine automation" by helping companies turn operational data into actionable insights.”

Honeywell's pivot toward 'physical AI' and a corporate split suggests a broader trend in the industrial sector to decouple legacy conglomerates into specialized entities. By separating aerospace, performance materials, and automation, the company is betting that agility and AI-driven efficiency will solve the persistent labor shortages threatening global manufacturing and infrastructure.