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

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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. Photo via Getty Images

Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 did not 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:

  1. 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.
  1. 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.

  2. 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.

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Hong Ogle is the president of Bank of America Houston. Rodrigo Ortiz Gomez is a market executive in Bank of America’s Transformative Technology Banking Group as well as the national software banking lead for the Global Commercial Bank.

Eleven business leaders were selected for a new entrepreneurship-focused council for Rice University. Photo courtesy of Rice University

Rice University taps 11 Houston business leaders for new entrepreneurship council

leadership council

Rice University has named 11 successful business leaders with ties Houston to its inaugural council focused on entrepreneurship.

Frank Liu, a Rice alumnus and founder of the Rice University Liu Idea Lab for Innovation and Entrepreneurship, or Lilie, recruited the entrepreneurs to the council, and each has agreed to donate time and money to the university’s entrepreneurship programs, according to the university.

Members of the council, known as the Lilie’s Leadership Council or LLC, individuals have experience in a variety of fields, from the industrial and automotive sectors to local government and public radio.

"I owe much of my entrepreneurial success to opportunities I had while at Rice University,” Liu says in a statement. “I can't imagine the heights students today can achieve with the resources that now exist through Lilie. Over the last several years, as the No. 1 ranked Graduate Entrepreneurship program in the country, we have seen exponential growth in student engagement, and we have witnessed the life-changing technologies—tackling big problems in industries like energy and healthcare—bred within Lilie classes and programs. I am thankful for the commitment of Lilie's Leadership Council for propelling these founders from the classroom to the community and building the next generation of Houston's economy.”

LCC's inaugural cohort includes:

  • Sandy P. Aron: president of Hunington Properties who has served on the boards of the St. Francis Episcopal Day School of Houston, Congregation Beth Israel of Houston and Jones Partnership at Rice’s Jones Graduate School of Business
  • John Chao, vice president and managing director of Westlake Innovations and board member of Westlake Corp. The Rice alumnus previously served as COO of New York Public Radio and partner in the strategy and finance practice at McKinsey & Co.
  • Shoukat Dhanani, CEO of Sugar Land-based Dhanani Group Inc., a family owned and operated business conglomerate
  • Lorin Gu, founding partner of Recharge Capital and the founding chair of the Global Future Council at the Peterson Institute of International Economics
  • Earl Hesterberg, former CEO of Group 1 Automotive and former group vice president of North America marketing, sales and service for Ford Motor Co., who is currently chairing the capital campaign at Kids Meal Inc. in Houston.
  • Robert T. Ladd, chairman and chief executive of Stellus Capital Investment Corp. who is also chairman of the board of trustees of Rice and a member of the advisory council for the UT Health's McGovern Medical School
  • Frank Liu, co-founder and co-owner of Lovett Industrial and the founder and owner of Lovett Commercial, Lovett Homes and InTown Homes
  • Charlie Meyer, CEO of Lovett Industrial who formerly served as managing director at Hines Interests in Houston and director of construction and development for NewQuest Properties. He currently serves on the board of directors for Generation One and NAIOP Houston.
  • Hong Ogle, president of Bank of America Houston and Southeast/Southwest Division Executive for Bank of America Private Bank who serves on the board of Greater Houston Partnership and Central Houston Inc. and chairs the Bank of America Charitable Foundation in Houston.
  • Annise Parker, Houston’s 61st mayor who is currently CEO of the Victory Fund, a nonprofit devoted to electing pro-equality, pro-choice LGBTQ+ leaders to public office
  • Gary Stein, CEO of Triple-S Steel Holdings who serves on the American Institute of Steel Construction Board and the MD Anderson Cancer Center Board of Visitors

Over the summer, Lilie and Rice's Office of Innovation also announced its 2023 cohort of Innovation Fellows. The program, open to Rice faculty and doctoral and postdoctoral students, provides support to move innovation out of labs and into commercialization and up to $20,000 in funding.

Earlier this year, Lilie also launched a new startup accelerator program for students called the Summer Venture Studio, which ran from May through August.
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Rice lands $15M U.S. Army award to launch next-gen wireless research center

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The U.S. Army Research Office has awarded Rice University $15 million to establish a new center for next-generation sensing and communications.

The five-year research center—dubbed the Center for Large Aperture Secure Sensing, Imaging and Communications (CLASSIC)—will unite researchers from universities and national laboratories to develop advanced antenna technologies for future wireless systems. Edward Knightly, the Sheafor-Lindsay Professor of Electrical and Computer Engineering at Rice, will lead the center that “combines expertise in wireless networking, antennas, radar, artificial intelligence, circuits and physics to address growing demands on wireless systems,” according to Rice.

“The challenges we’re tackling require advances that span physics, hardware, communications and computing," Knightly said in a news release. “By combining those strengths in a single center, we can accelerate the development and demonstration of technologies that would not be possible through individual efforts alone.”

Joining Knightly will be Ashutosh Sabharwal of Rice, Sensen Li of the University of Texas at Austin, Hou-Tong Chen of Los Alamos National Laboratory, Danijela Cabric of UCLA, Josep M. Jornet and Tommaso Melodia of Northeastern University, Daniel M. Mittleman of Brown University, and Willie Padilla of Duke University.

Industry partners include Booz Allen Hamilton, Intel, Keysight, Lockheed Martin, MITRE, Northrop Grumman, Qualcomm and Raytheon.

CLASSIC researchers will investigate how large-scale antenna arrays (ELSAAs) can expand the capabilities of wireless systems where technology is limited.

ELSAAs use thousands of coordinated antenna elements to direct radio waves. Researchers aim to develop ways to use the technology to help maintain steady communication when signals are blocked or disrupted and to detect and generate detailed images of concealed objects.

Along with ELSAAs, the center will work to develop sensing techniques for threat detection, study wireless jamming and build resilient high-speed wireless networks. Researchers will ultimately validate the technology in labs and via drone-based field trials.

CLASSIC will also work on developing an AI-driven modeling framework that will simulate complex electromagnetic environments in real time.

“This award demonstrates Rice’s leadership in tackling complex national research challenges through collaboration across disciplines and institutions,” David Sholl, executive vice president for research at Rice, added in the release.

UH scores $18M NIH grant for chronic disease research

research funding

The University of Houston has received a coveted $18.8 million grant from the National Institutes of Health to launch a program to address the root causes of chronic disease.

Only 22 institutions nationwide receive this NIH award, and the 5-year process aligns with the newly established UH Health’s mission to expand healthcare innovations in Texas and beyond. The initiative will be housed in the UH Population Health department.

"This generous funding allows us to directly confront the root causes of chronic illness that place a heavy burden on so many families," Dr. Jonathan McCullers, vice president for health affairs at UH, said in a news release. "With the recent launch of UH Health, we have an unprecedented opportunity to translate scientific discovery into healthier outcomes for our communities by bringing together experts from across the university to improve health where it matters most.”

Through the program, UH researchers from different areas of expertise will work together to address the challenges of chronic illness by looking at biological, social and behavioral factors.

According to the university, chronic diseases like heart disease, diabetes, strokes and others are the leading cause of illness, disability and death in the U.S. They account for 90 percent of the nation’s $5.3 trillion in annual healthcare spending.

Bettina Beech, chief of population health and translational science at UH, serves as principal investigator for the program.

“Chronic disease management largely happens during the 8,700 hours each year that people are not visiting their healthcare provider,” Beech added in the news release. “While healthcare is indispensable, it only accounts for 20 percent of how health is created — genetics accounts for another 10 percent, and the other 70 percent is determined by behavior, social conditions and environment.”

With the funds from the grant, UH will also be able to expand research infrastructure, add to community partnerships, support complementary research, and invest in early-career investigators, according to the news release. UH also aims to develop solutions that could help ease the economic burden of chronic disease.

Report: Where Texas ranks among best and worst states to live in 2026

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After earning its worst-ever ranking last year, Texas has improved slightly on an evaluation of the best states to live, but it's still at the bottom of the pack.

Each year, WalletHub's analysts compare all 50 states using 51 livability metrics to measure their affordability, economy, education and health, quality of life, and safety. Factors that were weighed include the cost of living, homeownership rates, population and income growth rates, wealth gaps, public school system quality, road quality, crime rates, and many others.

The Lone Star State landed at No. 36 in 2026, making it the 15th worth state to live right now. That's on par with its 2024 ranking, and it's a two-spot improvement over its 2025 performance.

While Texas residents can brag about living in a state with the No. 1 highest number of restaurants per capita and the 7th best quality of life in the country, that's about it. Texas earned middling-to-poor scores among the four remaining livability rankings: safety (No. 33), affordability (No. 35), economy (No. 37), and education and health (No. 40).

Here's how Texas fared in other nationwide rankings in the study:

  • No. 27 – Income Growth
  • No. 30 – Housing Costs
  • No. 39 – Percentage of Population in Poverty
  • No. 42 – Percentage of Adults in Fair or Poor Health
  • No. 46 – Homeownership Rate
  • No. 49 – Percentage of Population Aged 25 and Older with a High School Diploma or Higher
  • No. 48 – Average Weekly Work Hours
  • No. 50 – Percentage of Insured Population

Texas has a lot of work to do to improve its livability for all of its residents, but especially for women, according to several other 2026 WalletHub studies. Texas is the fourth-worst state for women, the ninth-worst state for working mothers, and the seventh-worst place to have a baby based on limited access to maternal and pediatric healthcare.

At the very bottom of the report is New Mexico, ranking 50th overall, with Louisiana (No. 49), Mississippi (No. 48), Alaska (No. 47), and Arkansas (No. 46) rounding out the bottom five.

After holding on as the No. 1 best state to live for a few years in a row, Massachusetts now ranks No. 4 and was overtaken by Idaho (No. 1), New Jersey (No. 2), and Wisconsin (No. 3). New Hampshire rounds out the top five best states to live.

WalletHub's top 10 best states to live in 2026 are:

  • No. 1 – Idaho
  • No. 2 – New Jersey
  • No. 3 – Wisconsin
  • No. 4 – Massachusetts
  • No. 5 – New Hampshire
  • No. 6 – Wyoming
  • No. 7 – Utah
  • No. 8 – Minnesota
  • No. 9 – Pennsylvania
  • No. 10 – Florida
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This article originally appeared on CultureMap.com.

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