Davos 2026: Honeywell sharpens focus on automation, data and physical AI, says CEO

Honeywell is revamping its operations and intensifying its focus on automation, data and physical artificial intelligence as key pillars of its long-term growth strategy, chairman and chief executive officer Vimal Kapur said in an interaction with CNBC-TV18 on the sidelines of the World Economic Forum 2026 in Davos.

Kapur said the company took a strategic decision in February 2025 to split into three separate entities, with each company focusing on distinct growth opportunities, allowing for sharper operational and strategic focus across businesses.

Despite the restructuring, automation will remain central to Honeywell’s outlook, Kapur said, adding that automation represents a long-term secular growth trend that sits at the core of the company’s operations. He said the company also sees significant upside from improved use of data and that unlocking the value of data will be critical to future growth.

Looking ahead over the next two to three decades, Kapur said artificial intelligence is expected to be a major driver of productivity gains, adding that Honeywell stands to benefit significantly from advances in AI and the resulting improvements in efficiency.

He acknowledged that executing physical AI remains challenging, largely due to limited access to relevant data, noting that much of the data required for physical AI applications is not publicly available. Kapur said while physical AI is difficult to implement, the outcomes can be substantial when executed effectively.

On global trade and supply chains, Kapur said tariffs have had a limited impact on Honeywell’s business due to its localisation strategy. He said the company manufactures locally across multiple geographies, adding that many global companies are increasingly shifting towards more regionalised supply-chain models.

Kapur also said Honeywell is adopting a cautious approach to capital allocation this year, particularly on mergers and acquisitions, as it seeks to preserve its credit rating.

On the deployment of artificial intelligence within the company, Kapur said the focus remains on augmenting human productivity rather than replacing workers, adding that AI will play an important role in supporting and enhancing the workforce rather than displacing it.