Introduction to AI Adoption
Three businesses based in the Houston area have made it to Fortune’s inaugural list of the top adopters of AI among Fortune 500 companies. These companies are leading the way in incorporating artificial intelligence into their operations, and their efforts are paying off.
Top AI Adopters in Houston
The three companies that made the list are:
- No. 7 energy company ExxonMobil, based in Spring
- No. 19 tech company Hewlett Packard Enterprise, based in Spring
- No. 47 energy company Chevron, based in Houston
These companies have taken significant steps to integrate AI into their businesses, and their investments are expected to yield substantial returns.
ExxonMobil’s AI Strategy
In 2024, ExxonMobil’s executive chairman and CEO Darren Woods explained that AI would play a key role in achieving a $15 billion reduction in operating costs by 2027. The company is working hard to apply new technology to drive effectiveness and efficiency. Woods told Wall Street analysts, "There is a concerted effort to make sure that we’re really working hard to apply that new technology to the opportunity set within the company to drive effectiveness and efficiency."
Hewlett Packard Enterprise’s AI Initiatives
Hewlett Packard Enterprise is also employing AI to decrease costs. In March, the company announced a restructuring plan, including the elimination of 3,000 jobs, aimed at cutting about $350 million in annual expenses. The restructuring is scheduled to wrap up by the end of October. The company’s Catalyst cost-cutting program includes a push to use AI across the company to improve efficiency. Marie Myers, the company’s executive vice president and chief financial officer, told Wall Street analysts, "Our ambition is clear: A leaner, faster, and more competitive organization. Nothing is off limits. We are focused on rethinking the business — not just reducing our costs, but transforming the way we operate."
Chevron’s AI Applications
At Chevron, AI tools are being used to quickly analyze data and extract insights from it. The company also employs advanced AI systems known as large language models (LLMs) to create engineering standards, specifications, and safety alerts. AI is even being put to work in Chevron’s exploration initiatives. Bill Braun, Chevron’s chief information officer, said at a VentureBeat-sponsored event in 2024 that AI-savvy data scientists, or "digital scholars," are always embedded within workplace teams "to act as a catalyst for working differently."
The Fortune AIQ 50 Ranking
The Fortune AIQ 50 ranking is based on ServiceNow’s Enterprise AI Maturity Index, an annual measurement of how prepared organizations are to adopt and scale AI. To evaluate how Fortune 500 companies are rolling out AI and how much they value AI investments, Fortune teamed up with Enterprise Technology Research. The results went into computing an AIQ score for each company. At the top of the ranking is Alphabet (owner of Google and YouTube), followed by Visa, JPMorgan Chase, Nvidia, and Mastercard.
Other Texas Companies on the List
Aside from ExxonMobil, Hewlett Packard Enterprise, and Chevron, two other Texas companies made the list: Arlington-based homebuilder D.R. Horton (No. 29) and Austin-based software company Oracle (No. 37). Jeremy Kahn, Fortune’s AI editor, said in a news release, "The Fortune AIQ 50 demonstrates how companies across industry sectors are beginning to find real value from the deployment of AI technology."
Conclusion
The adoption of AI is becoming increasingly important for companies to stay competitive. The three Houston-based companies that made the Fortune AIQ 50 list are leading the way in AI adoption, and their efforts are expected to yield significant returns. As AI technology continues to evolve, it will be exciting to see how these companies and others continue to innovate and push the boundaries of what is possible with AI.
