Emerson integrates AI advisor into test software to boost productivity

AUSTIN - Emerson (NYSE:EMR), an $80 billion market cap leader in the electrical equipment industry, announced Tuesday that its Nigel AI Advisor is now integrated into the company’s flagship test software products, marking its first step in incorporating test-optimized artificial intelligence into its portfolio. According to InvestingPro data, the company maintains strong financial health with impressive gross profit margins of nearly 53%.

The AI tool, built on large language models and specifically trained on NI software, is designed to help engineers work more efficiently with LabVIEW and TestStand programs by analyzing code and providing improvement recommendations.

According to the company, Nigel allows users to ask questions using plain language to receive suggestions for utilizing hundreds of functions while maintaining data security through a cloud platform.

"Nigel reduces test complexity, enabling engineers to focus on their own innovation and business goals," said Ritu Favre, president of Emerson’s test and measurement business, in a press release statement.

The AI tool was first introduced to attendees at this year’s NI Connect conference. It is now included in Emerson’s NI LabVIEW+ Suite, which contains purpose-built software tools that help engineers automate measurements, analysis and tests.

Emerson plans to expand Nigel’s integration into other test software products within its portfolio. The company states that as large language models advance and Emerson continues to refine the technology for test and measurement specific tasks, the AI advisor will increase in intelligence.

The industrial technology company, headquartered in St. Louis, Missouri, specializes in automation solutions across industries including semiconductor, transportation, and electronics. Trading near its 52-week high, Emerson’s stock currently appears overvalued according to InvestingPro analysis, which offers 15+ additional exclusive insights and a comprehensive Pro Research Report, available to subscribers.

In other recent news, Emerson has announced a strategic partnership with TotalEnergies to deploy its AspenTech Inmation technology for large-scale industrial data collection across TotalEnergies’ global sites. This collaboration aims to centralize millions of real-time data points over a two-year period. Additionally, Emerson has launched its Ovation AI-enabled Virtual Advisor, designed to enhance automation systems in the power and water industries by offering system documentation access and maintenance forecasting. Analyst firm TD Cowen maintained its Buy rating on Emerson, with a price target of $150, based on the company’s projected fiscal year 2026 earnings per share. Meanwhile, KeyBanc has increased its price target for Emerson to $155 from $150, maintaining an Overweight rating. KeyBanc’s decision followed discussions with Emerson’s CFO and highlighted the company’s strong margins and growth opportunities. Another price target adjustment by KeyBanc raised Emerson’s target to $150 from $125, citing potential upside in fiscal 2025 and 2026 estimates due to improving orders and conservative guidance. These developments underscore Emerson’s ongoing transformation and strategic initiatives in the industrial automation sector.

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