Key Takeaways from the Monday Live! Discussion on Smarter Buildings Post-AHR Expo 2025
The latest episode of Monday Live! on February 24, 2025, brought together industry experts to reflect on the AHR Expo in Orlando and discuss the future of smarter buildings. The conversation was rich with insights, trends, and predictions about the evolving landscape of building automation, AI, and the role of IT in the HVAC and controls industry. Here are the key takeaways from the discussion:
1. AHR Expo 2025: A Turning Point for the Industry
The AHR Expo in Orlando marked a significant shift in the industry. Traditionally a mechanical-focused event, this year’s expo saw a stronger emphasis on IT, software, and AI integration. Attendees noted that the industry is moving from a “heavy metal” mindset to a software-defined future. Sessions on autonomous buildings, AI, and controlling large-scale systems like heat pumps drew large crowds, signaling a growing interest in digital transformation.
Investment is flowing: The industry attracts significant investment from venture capitalists, signaling a growing recognition of its potential. Roger Harrold from SCCI observed, “We’re seeing startups and other companies now getting investments… it is becoming attractive outside of our industry.”
2. AI Adoption is Accelerating
AI is no longer a futuristic concept—it’s here, and the industry embraces it. Panelists observed that the fear surrounding AI has diminished, thanks in part to the widespread use of tools like ChatGPT. Companies are now more comfortable integrating AI into their operations, with a noticeable uptick in projects and deployments since January 2025. However, challenges remain, particularly around data accessibility and security.
3. The Rise of System Integrators
The industry’s power dynamics are shifting. Large manufacturers are losing dominance as system integrators and channel partners become more sophisticated and IT-savvy. These integrators are now driving innovation and implementation, especially in large-scale projects. This trend is expected to accelerate with the adoption of open-source platforms like Linux, which are making it easier for integrators to customize solutions.
“The large controls companies matter less and less… that power is moving out to the system integrators.”
Jim Lee
4. Data Accessibility is the Biggest Hurdle
While AI and software are advancing rapidly, accessing and normalizing data from older building systems remains challenging. Many buildings still rely on outdated control systems, making it difficult to extract meaningful data. Panelists emphasized the need for standardized connectivity and data integration approaches, such as the concept of an “Intelligent Building Backbone” (IBB), to simplify the process of deploying modern solutions.
5. The Role of Linux and Open-Source Platforms
The announcement of Linux’s involvement in the building automation space was a significant highlight of the expo. This move brings enterprise-level legitimacy to the industry and allows greater collaboration and innovation. The open-source community’s focus on scalability and interoperability aligns perfectly with the industry’s need for flexible, future-proof solutions.
6. Investment and Interest from Outside the Industry
The building automation sector attracts attention from investors and tech companies outside the traditional HVAC and controls space. Startups and medium-sized companies are receiving significant funding, indicating growing confidence in the industry’s potential. This influx of capital and expertise is expected to drive further innovation and the adoption of new technologies.
“This is going to be another significant change in how we construct systems and how our industry operates.” –
7. Procurement Practices Need to Evolve
One of the most significant barriers to innovation is the industry’s procurement practices. The current system, which often requires competitive bidding and commoditization of technology, stifles innovation and introduces unnecessary risk. Panelists called for a shift in how projects are procured, emphasizing the need for standardized, forward-thinking approaches that align with the rapid pace of technological change.
8. The Future Is Software-Defined
The consensus among panelists was clear: The industry’s future is software-defined. As AI, cloud computing, and open-source platforms evolve, the focus will shift from hardware to software solutions. This transition will enable greater scalability, interoperability, and innovation, ultimately leading to smarter, more efficient buildings.
Challenges and Opportunities:
- Bridging the Gap: Steve Tom from Contemporary Controls stressed the need for better data accessibility and standardized approaches to connectivity. “The challenge is… making connections to the data,” he stated.
- Education is Crucial: The industry needs to upskill its workforce to embrace these new technologies and approaches. Tracy Markie from Buildings IOT emphasized the need for training and education to facilitate this transition.
- Scaling Up: The industry needs to achieve more significant economies of scale to drive down the cost of hardware and enable wider adoption of advanced technologies.
Final Thoughts
The AHR Expo 2025 was a watershed moment for the industry, highlighting the growing convergence of IT and building automation. As AI and open-source platforms gain traction, the industry is poised for a new era of innovation and growth. However, challenges around data accessibility, procurement practices, and standardization must be addressed to realize this potential.
The next episode of Monday Live! in March will explore the theme of “Are We AI Ready?” This is a timely discussion as the industry continues to navigate this transformative period. Stay tuned for more insights and updates!
