Houston software shop bets on AI with new C-suite member

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Blue People has named Luis Arregoces as the company’s first chief artificial intelligence officer. Photo courtesy of Blue People

A Houston-based software company has named its first chief artificial intelligence officer.

Blue People has named Luis Arregoces as the company’s CAIO. With 20 years of experience, Arregoces has led AI projects for global Fortune 100 companies in various industries.

He has a Ph.D. in Economics from the University of New Mexico and is an adjunct professor in Statistics and Data Science at the University of Houston. He previously led the Applied Intelligence and Data Science at Accenture's Innovation Hub.

“We are beyond excited to have Luis on board,” Alfredo Arvide, chief innovation officer of Blue People, says in a news release. “His leadership and vision will allow Blue People to help clients and C-level executives develop AI roadmaps and solutions for real-time analytics, secure data sharing, and technology-agnostic ecosystems that will shape the future of innovation across all industries in Houston and throughout the region.”

Blue People has offices in Houston, Austin, Texas, and Monterrey, México. Blue People was named People’s Choice: Startup of the Year at the 2023 Houston Innovation Awards. The company also recently participated in CodeLaunch Houston, where its startup partner won the judges' pick in the competition.

“I am honored to join Blue People and be a part of this historic moment,” Arregoces says in a news release. ”Together, we have the opportunity to shape the future of AI in Houston and beyond. AI’s versatility and transformative potential make it indispensable across all industries to drive innovations, efficiency, and competitiveness.”

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Let's talk about dark data — what it means and how to navigate it. Graphic by Miguel Tovar/University of Houston

Houston expert: Navigating dark data within research and innovation

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Is it necessary to share ALL your data? Is transparency a good thing or does it make researchers “vulnerable,” as author Nathan Schneider suggests in the Chronicle of Higher Education article, “Why Researchers Shouldn’t Share All Their Data.”

Dark Data Defined

Dark data is defined as the universe of information an organization collects, processes and stores – oftentimes for compliance reasons. Dark data never makes it to the official publication part of the project. According to the Gartner Glossary, “storing and securing data typically incurs more expense (and sometimes greater risk) than value.”

This topic is reminiscent of the file drawer effect, a phenomenon which reflects the influence of the results of a study on whether or not the study is published. Negative results can be just as important as hypotheses that are proven.

Publication bias and the need to only publish positive research that supports the PI’s hypothesis, it can be argued, is not good science. According to an article in the Indian Journal of Anaesthesia, authors Priscilla Joys Nagarajan, et al., wrote: “It is speculated that every significant result in the published world has 19 non-significant counterparts in file drawers.” That’s one definition of dark data.

Total Transparency

But what to do with all your excess information that did not make it to publication, most likely because of various constraints? Should everything, meaning every little tidbit, be readily available to the research community?

Schneider doesn’t think it should be. In his article, he writes that he hides some findings in a paper notebook or behind a password, and he keeps interviews and transcripts offline altogether to protect his sources.

Open-source

Open-source software communities tend to regard total transparency as inherently good. What are the advantages of total transparency? You may make connections between projects that you wouldn’t have otherwise. You can easily reproduce a peer’s experiment. You can even become more meticulous in your note-taking and experimental methods since you know it’s not private information. Similarly, journalists will recognize this thought pattern as the recent, popular call to engage in “open journalism.” Essentially, an author’s entire writing and editing process can be recorded, step by step.

TMI

This trend has led researchers to open-source programs like Jupyter and GitHub. Open-source programs detail every change that occurs along a project’s timeline. Is unorganized, excessive amounts of unpublishable data really what transparency means? Or does it confuse those looking for meaningful research that is meticulously curated?

The Big Idea

And what about the “vulnerability” claim? Sharing every edit and every new direction taken opens a scientist up to scoffers and harassment, even. Dark data in industry even involves publishing salaries, which can feel unfair to underrepresented, marginalized populations.

In Model View Culture, Ellen Marie Dash wrote: “Let’s give safety and consent the absolute highest priority, with openness and transparency prioritized explicitly below those. This means digging deep, properly articulating in detail what problems you are trying to solve with openness and transparency, and handling them individually or in smaller groups.”

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This article originally appeared on the University of Houston's The Big Idea. Sarah Hill, the author of this piece, is the communications manager for the UH Division of Research.

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Tesla recalling more than 375,000 vehicles due to power steering issue

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Tesla is recalling more than 375,000 vehicles due to a power steering issue.

The recall is for certain 2023 Model 3 and Model Y vehicles operating software prior to 2023.38.4, according to the National Highway Traffic Safety Administration.

The printed circuit board for the electronic power steering assist may become overstressed, causing a loss of power steering assist when the vehicle reaches a stop and then accelerates again, the agency said.

The loss of power could required more effort to control the car by drivers, particularly at low speeds, increasing the risk of a crash.

Tesla isn't aware of any crashes, injuries, or deaths related to the condition.

The electric vehicle maker headed by Elon Musk has released a free software update to address the issue.

Letters are expected to be sent to vehicle owners on March 25. Owners may contact Tesla customer service at 1-877-798-3752 or the NHTSA at 1-888-327-4236.

Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

Cedar Park-based Firefly Aerospace, which received $8.2 million
Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

Houston experts: Can AI bridge the gap between tech ambitions and market realities?

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Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 hasn’t provided the influx of capital-raising opportunities that many late-stage tech startups and venture capitalists (VCs) have been waiting for. Since highs last seen in 2021—when 90 tech companies went public—the IPO market has been effectively frozen, with just five tech IPOs between January and September 2024.

As a result, limited partners have not been able to replenish investments and redeploy capital. This shifting investment landscape has VCs and tech leaders feeling stuck in a holding pattern. Tech leaders are hesitant to enter the public markets because valuations are down 30 percent to 40 percent from 2021, which is also making late-stage fundraising more challenging. After all, longer IPO timelines mean fewer exit opportunities for VCs and reduced capital from institutional investors who are turning toward shorter-term investments with more liquid exit options.

Of course, there’s always an exception. And in the case of a slowed IPO market, a select slice of tech companies—AI-related companies—are far outperforming others. While not every tech startup has AI software or infrastructure as their core offering, most can benefit from using AI to revise their playbook and become more attractive to investors.

Unlocking Growth Potential with AI

While overall tech startup investment has slowed, the AI sector burns bright. This presents an opportunity for companies that strategically leverage AI, not just as a buzzword but as a tool for genuine growth and differentiation. Imagine a future where AI-powered insights unlock unprecedented efficiency, customer engagement and a paradigm shift in value creation. This isn’t just about weathering the current storm of reduced access to capital; it’s about emerging stronger, ready to lead the next wave of tech innovation.

Here's how to navigate the AI frontier and unlock its potential:

Understand that data is the foundation of AI success. AI is powerful, but it’s not magic. It thrives on high-quality, interconnected data. Before diving into AI initiatives, companies must assess their data health. Is it structured in a way that AI can understand? Does it go beyond raw numbers to capture context and meaning—like customer sentiment alongside sales figures? Rethinking data infrastructure is often the crucial first step.

Focus on amplifying strengths, not reinventing the wheel. The allure of AI can tempt companies into pursuing radical reinvention. However, a more effective strategy is to leverage AI to enhance existing strengths and address core customer needs. Why do customers choose your company? How can AI supercharge your value proposition? Consider Reddit’s strategic approach: They didn’t overhaul their platform before their 2024 IPO. Instead, they showcased the value of their vast online communities as fertile ground for AI development, leading to a remarkable first-day stock surge of 48 percent.
Use AI as a customer-centric force multiplier. Companies with a deep understanding of their customer base are primed for AI success. By integrating AI into the very core of their product or service—the reason customers choose them—they can create a decisive competitive advantage based on delivering tangible customer value.

From Incremental Gains to Transformative Growth

This practical, customer-centric approach has the potential to help companies generate immediate growth while laying the foundation for future reinvention. By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. The future belongs to those who embrace AI not as a destination but as a continuous journey of innovation and growth.