OEM Disruption: When Smart Equipment Challenges Traditional Building Automation

Continuing the AI Conversation
Last week’s deep dive into Kenny Seaton’s AI-driven transformation at CSU Dominguez Hills revealed how AI machine learning is revolutionizing building operations – from achieving 96% reductions in gas usage to creating self-optimizing systems that outperform static OEM sequences. This week, we explored the inevitable industry tension this creates: How can proprietary innovation coexist with the open ecosystems needed for AI’s full potential?

1. The Proprietary vs. Open Dilemma

The discussion opened with a fundamental question: Does innovation require proprietary technology? Anto framed the challenge using a light bulb (innovation) and padlock (proprietary) metaphor:

Key Observations:

  • Historical Context: Early proprietary systems (like pre-BACnet controls) often emerged from necessity, not malice
  • The Lock-In Effect: Some vendors later weaponized proprietary protocols to restrict customer choice
  • Today’s Balance: “Proprietary innovation isn’t evil, but its implementation can be”

2. Industrial Automation’s Playbook

Highlighting the stark differences between building automation and industrial systems:

FactorIndustrial AutomationBuilding Automation
ProcurementEquipment-driven (no low-bid)Project-based (value-engineered)
Standards AdoptionOften viewed as a cost centerProliferation of competing protocols
Mission CriticalityDirect revenue impactOften viewed as cost center

The Takeaway: Industrial sectors standardized because equipment failures resulted in immediate production losses—a lesson for buildings as they become revenue-generating assets.

3. The Platform Solution

The Linux Foundation’s Tiger Team emerged with a potential path forward:

Progress Report:

  • RDF Framework: Consensus reached on using Resource Description Framework for cross-system data modelling
  • GitHub Momentum: Code repositories now being populated with interoperable building data examples
  • 2525 Integration: Work underway to align with ASHRAE’s building performance standards


“We’re not asking vendors to open their secret sauce – just the pantry doors. Let owners mix ingredients from different chefs.”

4. AI’s Double-Edged Sword

The group grappled with AI’s paradoxical role:

The Challenge:

  • Proprietary algorithms deliver unprecedented optimization (like Kenny’s Chiller AI)
  • Black-box models create new lock-in risks and auditability concerns.

The Opportunity: Keith’s case study showed how open APIs can allow:

  • Third-party validation of AI decisions
  • “Mix-and-match” with best-in-class analytics
  • Future-proofing against vendor obsolescence

5. An Owner-Led Revolution

The session closed with clear action items:

For Owners:

  • Specify RDF compliance in procurement docs
  • Demand measurable outcomes in service contracts
  • Support pilot projects, intelligence layers

For Vendors:

  • Embrace “open enough” models while enabling integration
  • Invest in developer ecosystems around your platforms
  • Participate in standards groups like the Tiger Team

The Bottom Line:
As buildings evolve from static structures to adaptive organisms, the industry must forge a new compact one where proprietary innovation and open interoperability aren’t rivals, but essential partners in progress.


Watch the Full Discussion:


Continue the Conversation: #SmartBuildings #OpenInnovation #AIforBuildings

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