AI 'Belongs at Every Component' of the Energy Value Chain

Interview with Chevron

The below interview has been created using a transcript of the video. Find out more about our 2024 AI and Ethics agenda, or check out our pass and pricing options.

Introduction

In this interview from The AI Summit New York, Chuck Martin speaks with Sarah Karthigan, GM of Data and Insights Strategy and Innovation at Chevron, about AI's role in the energy value chain.

The Role of AI in the Energy Industry

In this interview from AI Summit New York, Chuck Martin talks to Sarah Karthigan, GM data and insights, strategy and innovation at Chevron. Sarah said Chevron are looking to adopt and scale AI with the right boundaries and safety measures.

Chuck Martin

Hi, this is Chuck Martin at the AI Summit in New York City, and I'm happy to say I've got with me from Chevron's Strategy and Innovation Lead, welcome. Thank you, thanks for having me. So Sarah, tell me where does AI and data fit in the energy industry?

Sarah Karthigan

Oh, it fits everywhere, Chuck. So if you look at the integrated value chain, data and AI belong in every component of that value chain. So let's talk about energy transition. We all know the future of the energy industry is low carbon.

AI and data are the technologies that are going to help shape that.

Post-Pandemic AI Adoption

Chuck Martin

So do people at the top, in the whole energy industry, do they get that?

Sarah Karthigan

I think so, very much so. Especially after the pandemic, it became extremely clear that we're gonna have to adopt these technologies because the energy transition has accelerated.

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Navigating Change: Technology and Culture

Chuck Martin

So that implies a lot of change. Transformation has always changed. How do people deal with that?

Sarah Karthigan

So it is not only a technology change, it's also a cultural change, right? And so it's very much a step -by -step transition. The good news is AI is no longer exotic. It has become commonplace now, right? And people are seeing that it's foundational to what we wanna do in the energy sector. So the adoption has already begun.

Now it's a matter of upskilling our resources so as AI creates new jobs, we have a workforce that is ready to work alongside AI.

The Impact of ChatGPT

Chuck Martin

Is that because of chat GPT?

Sarah Karthigan

Chat GPT definitely changed the game. This time last year, it was not even in our vocabulary. And now even my sixth grader knows all about it, knows how to use it. So definitely it did accelerate the transition.

Chevron’s Approach to Emerging AI Technologies

Chuck Martin

So how does it accompany the size of Chevron adopt something that's just in general, something that's brand new like that where no one knows anything about it and all of a sudden... and everyone's using it, but there's no control yet.

Sarah Karthigan

That's a great question. So, we are a company, we are a technology company at our core, and we are very much entrusted in adopting the latest and the greatest technologies. Now, granted, as you just pointed out, this is something brand new, so we don't necessarily have the right regulations, right practices in place.

So, we’re looking at how do we adopt it and scale it within the company, within the right boundaries, within the right safety measures. So, that is something that we are looking at.

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Balancing Innovation and Control

Chuck Martin

So, now that everybody's already using it, is it tough to kind of rein it in?

Sarah Karthigan

So, within the company, we have already put in some very good best practices and guidelines on how it needs to be used. So, it is not, here, go about using it free for all people. So, that's not the approach that the company has taken. We did not want to take any of the extreme approaches. I know some companies have said, nope, we're not touching it, you know, with a 10 -foot pole. And there are others who are, might be just completely adopting it like the way it was rolled out. Within Chevron, though, we are taking a very, very pragmatic and a very intentional approach to how to get the best out of the technology, but at the same time using it with the right best practices in mind.

Addressing Cybersecurity in the Energy Sector

Chuck Martin

In the energy industry, cybersecurity is a big deal. Just in general, how does an industry that big with components that are that large deal with cybersecurity and those kinds of cyber risks?

Sarah Karthigan

Safety and security are just fundamental to the energy industry. Data security is something that we take very seriously. And we put in robust measures so that there are no breaches. So cybersecurity is definitely top of mind. Both from a safety perspective as well as from a cybersecurity perspective, we have functions of excellence that are primarily tasked with ensuring that the company, the energy industry as a whole is protected.

Chuck Martin

So a year from now, we're sitting here having this conversation about technology. What will we be talking about?

Sarah Karthigan

I think we're going to be hearing a lot more on augmented reality and how it is really just being adopted in some of these heavy industries. So we'll be talking about facilities of the future and how industries such as the energy industry that has existed for over a century, how are they adopting it and really building energy 2 .0.