Artificial intelligence is changing Houston — one industry at a time. Photo via Getty Images

Artificial intelligence is the buzzword of the decade. From grocery shopping assistance to personal therapy apps, AI has sunk its teeth into every single industry. Houston is no exception to the AI boom. Enterprise-level companies and startups are already flocking to H-town to make their mark in AI and machine learning.

Since the world is generating more data every minute — 1,736 terabytes to be exact — Houston-based companies are already thinking ahead about how to make sense of all of that information in real-time. That's where AI comes in. By 2021, 80 percent of emerging technologies will have AI foundations — Houston is already ninth on the list of AI-ready cities in the world.

AI and machine learning can process large amounts of data quickly and use that data to inform decisions much like a human would. Here are three ways Houston-based companies are using these emerging technologies to revolutionize the city's future.

Health care

The health care industry is primed for AI's personalization capabilities. Each patient that doctors and nurses encounter has different symptoms, health backgrounds, and prescriptions they have to remember. Managing that amount of information can be dangerous if done incorrectly. With AI, diseases are diagnosed quicker, medications are administered more accurately, and nurses have help monitoring patients.

Decisio Health Inc., a Houston-based health tech startup has already made its mark in the healthcare industry with its AI software helping to tackle the COVID-19 pandemic. Their software, in collaboration with GE Healthcare Inc, allows health care providers to remotely monitor patients. By looking at data from ventilators, patient monitoring systems, health records, and other data sources, doctors can make better decisions about patients from a safe distance.

Climate change

Climate change isn't solved overnight. It's an issue that covers water salinity, deforestation, and even declining bee populations. With a problem as large as climate change, huge amounts of data are collected and need to be analyzed. AI can interpret all of that information, show possible future outcomes, track current weather patterns, and find solutions to environmental destruction.

One Houston-based company in the energy tech industry, Enovate Upstream, has created a new AI platform that will help digitize the oil and gas sector. Their AI-powered platform looks at data from digital drilling, digital completions, and digital production, to give oil companies real-time production forecasting. Their work will hopefully make their oil production more efficient and reduce their carbon emission output. Since oil drilling and fracking are a major cause for concern around climate change, their work will make a difference in slowing climate change and make their industry as a whole more climate-conscious.

Energy

Energy is an industry rich with data opportunities—and as Houston's energy sector grows, AI has become a core part of their work. Houston's large influence in the energy sector has primed it for AI integration from startups like Adapt2 Solutions Inc. By using AI and machine learning in their software, they hope to help energy companies make strategic predictions on how to serve energy to the public efficiently. Their work has become especially important in the wake of COVID-19 and the resulting changing energy needs.

Another Houston-based company using AI to influence the energy industry is the retail energy startup Evolve Energy. Their AI and machine learning system help customers find better prices on fluctuating renewable resource—helping them save money on electricity and reducing emissions. The positive feedback from the public on their AI model has shown how energy companies are using emerging technologies like AI in a positive way in their communities.

The bottom line

Houston is more primed than most cities to integrate AI and machine learning into every industry. While there are valid concerns as to how much we should lean on technology for necessary daily tasks, it's clear that AI isn't going anywhere. And it's clear that Houston is currently taking the right steps to continue its lead in this emerging AI market.

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Natasha Ramirez is a Utah-based tech writer.

Houston is a top city for female entrepreneurs, according to a recent study. Getty Images

Houston named top city for female entrepreneurs, 2 local startups collaborate, and more innovation news

Short stories

Houston's innovation ecosystem has been booming with news, and it's likely some might have fallen through the cracks.

For this roundup of short stories within Houston innovation, Houston is recognized for its female-friendly business community, Texas ranks as top for gig economy, the latest Chevron investment is in nuclear energy, and more.

Houston named among top cities for female entrepreneurs

Houston ranked No. 11 on a new study on top cities for female business owners. Via fundera.com

According to a new study from Fundera, Houston ranks among the top 15 cities for female entrepreneurs in the United States. The Bayou City came in at No. 11 based on data pulled from The American Community Survey from the U.S. Census Bureau as well as the Tax Foundation. Metrics included:

  • Percent of self-employed business owners who are women — 18 percent of total score.
  • Percent of women employed in their own business — 18 percent of total score.
  • Earnings gap between male and female business owners — 18 percent of total score.
  • Housing cost as a percent of earnings for female entrepreneurs — 18 percent of total score.
  • Percent of residents with bachelor's degree, denoting high-skilled workforce — 9 percent of total score.
  • Job growth — 9 percent of total score.
  • Tax rates — 9 percent of total score.

"One of the most diverse cities in the country, Houston is also good to its women entrepreneur population," the study reads. "Its biggest strength here, however, may be in its job growth numbers, which were likely impacted by 2020's coronavirus pandemic. It remains to be seen whether the city's strong economic numbers will continue in the years to come."

Lubbock, the only other Texas city to crack the top 15, came in at No. 13.

Galen Data and Zibrio team up with new partnership

A Houston company's balance tracking technology is tapping into another Houston company's cloud technology. Photo courtesy of Zibrio

Houston-based tech companies, Galen Data and Zibrio, have announced a new medical device partnership. Zibrio's SmartScale, which can measure and track physical balance to identify an person's chance of falling, will be able to leverage the Galen CloudTM in order to securely connect data from the device with a patient's physician to support remote patient care.

"Our partnership with Zibrio is a case study in helping an early stage medical device company focus on what they do best," says Galen Data CEO Chris DuPont in a news release. "Galen Data provided outside expertise that has saved Zibrio the needless cost and burden of designing a cloud solution from scratch."

According to the release, the CDC reports that 28 percent of individuals over 65 fall each year, and falls are the leading cause of accidental death in those over 65. Amid the pandemic, the Australian PT Association found an increase in fall right of up to 30 percent.

"With COVID-19 impacting activities of older adults, it was even more critical to find a cost-effective solution to better track, manage, and analyze balance data from our SmartScale," says Zibrio founder and CEO, Katharine Forth, in the release.

IGNITE Madness startup applications close Sept. 4

Ignite Healthcare Network, a health tech startup group that promotes and advances female entrepreneurs, is closing startup applications for its October 22 and 29 event, Ignite Madness. The competition mimics a March Madness-style bracket and will be judged by 10 judges.

The brackets include:

  1. Mental /Behavioral Health
  2. Telemedicine/Remote Patient Monitoring
  3. Medical Devices
  4. Patient Engagement
  5. Employee Wellness
  6. Population Health/Analytics
  7. Femtech/Women's Health
  8. WILDCARD: Other Disruptive Solutions
Apply online for up to $300,000 in cash and prizes.

Texas named the 6th best state for freelance and gig workers

Gig workers are welcome in Texas. Screenshot via directlyapply.com

A job discovery platform, DirectlyApply, has identified the best gig economies to work in and Texas ranked as No. 6. The study looked at nine cost and job opportunity factors, which included the cost of living, the number of restaurants and attractions, the number of advertised gig roles, etc.

Texas has a reported 4,859 gig jobs and 16 gig companies operating locally, and the state sports an average gas price of $0.63 a liter and $1,422 a month to rent an apartment. New York, Florida, California, Ohio, and Illinois ranked ahead of Texas, respectively. The full study is available online.

Adapt2 Solutions recognized with award

Jason Kram is the executive vice president of Adapt2 Solutions. Photo courtesy of Adapt2 Solutions

Houston AI software company, Adapt2 Solutions, has been selected as the winner of the "Best AI Solution for Big Data" award in the 2020 AI Breakthrough Awards program conducted by AI Breakthrough. The awards recognize artificial intelligence and machine learning innovation. This year, the contest saw more than 2,750 nominations from over 15 different countries throughout the world, according to a news release.

"Energy enterprises are dealing with an increasingly complex and ever-changing landscape, including increased renewables, volatile markets, and increased pace of technology innovation for each of the commodity market," says James Johnson, managing director of AI Breakthrough, in the release.

"Adapt2 Solutions is in a unique position to support energy companies with powerful artificial intelligence technology to help their operations to automate, optimize and maintain a competitive advantage. We want to recognize this achievement by awarding them with 'Best AI Solution for Big Data' and we extend a hearty congratulations to the entire Adapt2 team on their well-deserved industry recognition."

The win comes at a strategic time for the company. Adapt2's predictive analytics models forecast unexpected fluctuations in power capacity. Amid the pandemic, this technology enables energy companies to map out demand at a time when they're balancing strained revenue and squeezed spending is paramount, Executive Vice President Jason Kram previously told InnovationMap.

"In times of disruption, big data can inform decision-making for energy companies to optimize energy-market operations with timely and reliable data," Kram says.

Houston Methodist introduces contactless temperature screening

Houston Methodist has set up over a hundred contactless temp checks across its facilities. Photo courtesy of Houston Methodist

Houston Methodist has incorporated new technology from care.ai, an AI-powered temperature monitoring platform, to conduct contactless temperature checks for visitors across 100 locations throughout eight hospitals and 36 physician clinics.

Upon entrance to designated areas, visitors stand in front of a tablet that scans an individual's temperature through the use of thermal technology aimed at the forehead. The technology aims to speed up screening measures and free up staff from the checkpoints. Should a visitor have an elevated skin temperature out of normal range, Methodist staff is contacted.

Chevron invests in nuclear fusion startup

The latest investment from CTV is in nuclear energy. Photo via chevron.com/technology/technology-ventures

Chevron's investment arm, Chevron Technology Ventures, recently announced an investment in Seattle-based Zap Energy Inc., which is working on a modular nuclear reactor. CTV sees nuclear energy as a promising avenue for innovation "across the globe access to affordable, reliable, and ever-cleaner energy," according to a news release.

"We see fusion technology as a promising low-carbon future energy source," says Barbara Burger, president of CTV, in a release. "Our Future Energy Fund investment in Zap Energy adds to Chevron's portfolio of companies we believe are likely to have a role in the energy transition."

This Series A investment is the 10th for Chevron's Future Energy Fund, which focuses on investments in companies that enable macro decarbonization, the mobility-energy nexus, and energy decentralization.

"Our Future Energy Fund investments provide us with strategic insight into power generation markets and potentially disruptive impacts of innovative approaches, like fusion, geothermal, wind, and solar, on the conventional power value chain," says Burger.

Houston-based Adapt2 Solutions has created AI-backed technology to help energy companies make strategic predictions in these unprecedented times. Getty Images

Houston startup uses AI and data to predict energy usage across sectors

crystal ball

Among the many complications presented by the coronavirus pandemic is coping with power needs. Movie theaters, malls, schools, and stadiums are among the places where energy use has been uneven at best. And the unevenness promises to continue as a lot of locations turn the lights back on but their operating hours remain in flux.

Houston-based Adapt2 Solutions Inc. believes its software can help energy companies power their way through the pandemic-driven haziness of power demand from commercial and residential customers.

"Today's energy companies need the speed and flexibility that cloud-native technology provides to fully leverage the massive amounts of data available to them," Jason Kram, executive vice president of Adapt2 Solutions, said in a December 2019 release.

Kram says that by capitalizing on artificial intelligence, machine learning, and cloud computing, his company's predictive analytics models forecast unexpected fluctuations in power capacity. Amid the pandemic, this technology enables energy companies to map out demand at a time when they're balancing strained revenue and squeezed spending is paramount, according to Kram.

Armed with this forecast data, Adapt2 Solutions' customers — including utility companies, energy traders, and power generators — can more easily plot power production, sales, and purchases, Kram tells InnovationMap. This data can be applied to conventional power, renewable energy, and battery-stored power.

"In times of disruption, big data can inform decision-making for energy companies to optimize energy-market operations with timely and reliable data," Kram says.

Adapt2 Solutions' load forecasting feature generates the predictive analytics models. This feature is embedded within the company's Adapt2 Bid-to-Bill flagship product, which helps energy companies manage front-office and back-office operations. Its other products are Adapt2 Green, designed for the renewable energy market, and Adapt2 Trade-to-Tag, aimed at improving management of energy trades.

"With Adapt2's AI-enabled solutions, we strive to help more customers focus on their core operations and bring business units together on a single platform to create an integrated approach," Kram says.

The company's customers include Consolidated Edison Inc. (ConEd), Duke Energy Corp., the East Kentucky Electric Cooperative, Exelon Corp., Invenergy LLC, Sempra Energy, the Tri-State Generation and Transmission Association, Tyr Energy LLC, and Vistra Energy Corp.

Adapt2 Solutions employs about 40 people, Kram says, and plans to grow its revenue and headcount by 25 percent to 40 percent this year. He says Adapt2 Solutions has managed to turn a profit even though it hasn't taken any outside funding since Francisco Diaz founded the company in 2008.

In March, Inc. magazine placed Adapt2 Solutions at No. 222 on its inaugural list of the fastest-growing private companies in Texas. The company's revenue shot up 72 percent from 2016 to 2018.

"The growth in our business reflects a growth in our customers' business, further validating that we have taken the right steps to help energy enterprises better respond to market and technology changes," Diaz said in a March release.


Jason Kram is the executive vice president of Adapt2 Solutions. Photo courtesy of Adapt2 Solutions

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Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Texas university's new flight academy opens at Houston Spaceport

cleared for takeoff

The vehicles may not have “student driver” stickers on them, but Texas Southern University has moved a dozen planes into its new training facility at the Houston Spaceport, opening the way for student flyers to use the facility.

TSU previously reached a deal with Houston Airports and the City of Houston in 2023 to house its prospective Flight Academy at Ellington Field. At the time, TSU had a small fleet of nine planes for student use, but a $5.5 million investment from the city greatly expanded the space available.

The Flight Academy includes a 20,000-square-foot hangar that serves as a TSU satellite campus. The school now has a fleet of 12 Cirrus SR20 aircraft that were acquired last year through state and alumni funding. An additional 4,500 square feet is used as classroom and office space. An 8,000-gallon fuel tank will support flight training operations.

TSU first launched its Aviation Science Management program in 1986 and added a professional pilot program in 2016. The school is now part of the United Airlines pipeline program and has also forged relationships with Delta and Southwest.

“I want to commend Texas Southern University and Houston Airports for their leadership and partnership in advancing aviation education right here in our city,” Houston City Councilwoman Dr. Carolyn Evans-Shabazz in a press release.

“It connects our students to high-paying, high-demand careers in aviation and aerospace. This is how we grow a city in the right way—by investing in workforce development, aligning education with industry and making sure our residents are prepared to lead in the industries of tomorrow. Houston is already a global leader in aerospace and projects like this strengthen that position even further, especially here at Ellington, where innovation and opportunity continue to take flight.”

The City of Houston signed an agreement to continue funding the academy for five years.

Amazon launches ultrafast, 30-minute delivery service across Houston

Amazon Now

More than 20 years after it redefined fast shipping, Amazon is preparing to raise the bar on consumer expectations again by offering to fulfill customers' most urgent product needs in Houston and other parts of the world in a half-hour or less for an extra fee.

The company, which revolutionized online shopping in 2005 with two-day deliveries for Prime members, is rapidly opening small order-processing hubs in dozens of U.S. and foreign cities to cater to shoppers who can't or don't want to wait for cough medicine to relieve flu symptoms or tomatoes for tonight's dinner salad.

The ultrafast service, called Amazon Now, first launched in India last June. Amazon says 30-minute deliveries now are also available in urban areas of the United States, Brazil, Mexico, Japan, the United Arab Emirates, the United Kingdom.

The mini-warehouses devoted to Amazon Now are about the size of a CVS drugstore. They stock about 3,500 products for expedited delivery, including beer, diapers, pet food, meat, nonprescription medications, playing cards and cellphone charging cables.

“We know that customers love speed and always have,” Beryl Tomay, Amazon’s head of transportation, told The Associated Press on Monday. “What we see customers doing, when we offer faster speeds, are they purchase more from Amazon. And Amazon becomes more top of mind for that or other types of items as well.”

In the U.S., the company first tested Amazon Now in Seattle, the home of its headquarters, and in Philadelphia. Most residents of the Dallas-Fort Worth area and Atlanta now have access as well. The service is also live in Dallas-Fort Worth, Denver, Minneapolis, Phoenix, Oklahoma City, Orlando, and dozens of other cities, Amazon said, with New York City and others expected by year-end.

The service charges for Amazon Now start at $3.99 for Prime members, who pay an annual fee of $139, and $13.99 for non-members. A $1.99 small basket fee applies to orders under $15, Amazon said.

The company's bet on a need for speed also comes as some consumers are rebelling against rushed deliveries as they weigh the potential impact on the environment and the workers tasked with preparing orders at a rapid rate.

Amazon’s approach
A relentless focus on speed helped Amazon build a logistics and e-commerce empire. After it made two days the new delivery time normal, Amazon moved into one-day and same-day deliveries for its Prime members. This spring, the company began making 90,000 products available in one hour or three hours at an extra cost.

The scaled down and sped up microhubs that are designed to handle 30-minute orders represent another step in Amazon's pursuit.

Only a handful of people prepare orders from aisles of shelves in the 5,000- to 10,000-square-foot facilities, unlike the sprawling fulfillment centers storing millions of items where Amazon employs a mix of human workers and robotics to pick and pack orders.

Amazon tailors the product inventory to each location and uses artificial intelligence and other technology to analyze what customers buy, as well as when and how often. The most popular U.S. purchases so far include soap, toothpaste, mouthwash, toilet plungers, bananas, limes and wireless earbuds, Amazon said.

The competition
Amazon’s attempt to up the instant gratification ante provides direct competition to on-demand food delivery platforms like Instacart, Uber Eats, DoorDash and Grubhub, which don't have the scale of the e-commerce titan, according to independent retail analyst Bruce Winder.

“What Amazon brings is their prowess in supply chain,” Winder said.

These smaller companies said they don't see Amazon as a threat, though, citing the hundreds of thousands of items they are able to deliver to users' doorsteps by partnering with various merchants and restaurants.

“DoorDash has a mission to empower grocers and retailers and augment their existing footprint, not to replace them,” DoorDash spokesperson Ali Musa said in an emailed statement. “We win only when they win, which is how we can offer over half a million grocery and retail items in under an hour across the country.”

Amazon also is in a race with Walmart to become the retailer that reliably gets orders to online shoppers in under an hour.

For an additional $10 on top of standard delivery charges, shoppers can place Walmart Express Delivery orders from among more than 100,000 products that are guaranteed to arrive in an hour. Many customers, however, are receiving the items under 30 minutes, Walmart CEO John Furner told analysts in February.

Domino's cautionary tale
Companies have promised deliveries in 30 minutes or less before, but the landscape also is littered with failed attempts to break the speed barrier.

The COVID-19 pandemic produced a flurry of companies that promised 10- to 15-minute grocery deliveries from microwarehouses in dense neighborhoods, according to Sucharita Kodali, an analyst at market research firm Forrester Research.

But soaring operating costs, low customer loyalty and the drying up of investor money ultimately caused most to fail before the pandemic was over, analysts said.

Domino’s in 1984 pushed a guarantee that customers would receive their pizzas for free if they weren't delivered in under a half-hour. The company amended the “30 minutes or it’s free” policy after two years, providing only a $3 discount for late deliveries.

The promotion helped Domino’s win market share, but it ended up tarnishing the company's reputation. It dropped the guarantee in December 1993 after a string of crashes and lawsuits involving drivers racing to meet the deadline.

Brad Jashinsky, a retail analyst at information technology research and consulting firm Gartner, said he thinks Amazon should take the pizza chain's experience as a cautionary tale.

“You get in trouble when you start overpromising something like that,” he said.

Amazon won't be making any time guarantees and instead plans to keep customers who chose the 30-minute delivery option updated on the progress of their orders, Tomay said.

“There's no rushing either in our building workers or the gig workers,” she said.

Taking it slow
Kodali thinks Amazon will need a lot of people placing orders around the same time from the same or adjacent apartment buildings for the 30-minute service to be cost-effective.

Consumers may appreciate rapid receipt of products like toilet paper and batteries, but retailers and logistics experts said they also see some online shoppers, especially members of Generation Z, choosing no-rush shipping for products they don't need in a hurry.

Amazon for several years has invited customers to skip one- or two-day delivery and to receive their orders on the same day in as few parcels as possible. Consolidating orders into fewer packages by electing to have them delivered at the same time cuts down on boxes, shipping envelopes and fuel use, analysts said.

“The millennials who came to age in an era that was on fast delivery came to expect it de facto, whereas ... Gen Z is more accepting of a slower speed than previous generations before them,” said Darby Meegan, a general manager at Flexport, a supply chain and logistics company that fulfills orders for thousands of online merchants.

Still, Amazon executives have cited positive early results for Amazon Now in India, where they said Prime members tripled their requests for 30-minute deliveries once they started using the service.

Amazon Now also is attracting more repeat American customers, Tomay said.

“It’s in early days and time will tell,” she said. “I think that it will be interesting to see how it evolves.”