6 ways Houston startups and small businesses can integrate AI, machine learning

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AI and ML have ceased to be distant dreams of the future, becoming accessible tools that can revolutionize the way startups and small businesses operate. Photo via Getty Images

In today's fast-paced and technologically driven world, artificial intelligence and machine learning have emerged as transformative technologies that hold immense potential for startups and small businesses. While AI was once perceived as the domain of large corporations, it has become increasingly accessible, enabling startups and small businesses to leverage its capabilities to drive growth, enhance efficiency, and gain a competitive edge.

To start, AI is computer software that mimics the ways humans think in order to perform complex tasks, such as analyzing. ML is a subset of AI that uses algorithms trained on data to produce models that can perform complex tasks. The terms are often interchangeable.

Let’s explore how startups and small businesses can tap into the power of AI and ML right now to make a tangible impact on their business operations.

1. Streamlining Operations with Intelligent Automation

One of the primary advantages of AI and ML is their ability to automate repetitive and time-consuming tasks. Startups and small businesses can employ AI-powered chatbots to handle customer inquiries, freeing up valuable human resources and improving response times. Using chatbots in the past has been associated with a negative customer experience but is now more personal due to natural language processing (NLP) and offers the quick, convenient experience customers are looking for. ML algorithms can also automate data entry, data analysis, and report generation, reducing errors and boosting productivity. If you’re a business with regular customer interaction, you can implement a chatbot service. There are many chatbot service providers to explore with different price points.

2. Personalized Customer Experiences

AI and ML algorithms excel at processing vast amounts of data and extracting meaningful insights. By leveraging customer data, startups and small businesses can employ AI-driven recommendation systems to deliver personalized product recommendations, tailored marketing campaigns, and customized user experiences. This level of personalization enhances customer satisfaction, engagement, and ultimately, loyalty. For businesses with large amounts of data, you can implement a machine learning model into a basic application such as Excel. Just like chatbot service providers, there are many ML applications to choose from.

3. Enhanced Decision-Making with Predictive Analytics

Startups and small businesses often face the challenge of making informed decisions amidst uncertainty. AI and ML models can analyze historical data, identify patterns, and generate accurate predictions for various business aspects, such as demand forecasting, sales projections, and inventory management. Armed with these insights, business owners can make data-driven decisions that optimize their operations, reduce costs, and maximize profitability. Similar to creating a personalized customer experience, businesses can use ML to sift through large amounts of data, providing insights into trends not just with text, but also intention.

4. Improving Marketing and Sales Strategies

AI and ML have revolutionized marketing and sales strategies, offering startups and small businesses the ability to target the right audience with precision. Natural language processing (NLP) enables sentiment analysis, allowing businesses to gauge customer opinions and adapt their strategies accordingly. AI-powered tools can also automate lead generation, lead scoring, and customer segmentation, enabling businesses to focus their efforts on high-potential leads and optimize conversion rates. Many common CRM platforms incorporate AI with price points for small businesses.

5. Enhanced Cybersecurity and Fraud Detection

Startups and small businesses are not immune to cyber threats and fraudulent activities. AI and ML can fortify their security measures by analyzing network traffic patterns, detecting anomalies, and identifying potential threats. ML algorithms can detect fraudulent transactions in real-time, safeguarding businesses from financial losses. By deploying AI-driven cybersecurity measures, startups and small businesses can protect their data and ensure the trust of their customers.

6. Efficient Supply Chain Management

For startups and small businesses that rely on efficient supply chain management, AI and ML offer significant benefits. These technologies can optimize inventory levels, anticipate supply chain disruptions, and streamline logistics. By analyzing historical data and real-time information, AI algorithms can identify optimal delivery routes, reduce transportation costs, and minimize delays. This level of efficiency contributes to better customer service and higher customer satisfaction.

AI and ML have ceased to be distant dreams of the future, becoming accessible tools that can revolutionize the way startups and small businesses operate. It is crucial to recognize that successful implementation of these technologies requires careful planning, data quality, and ongoing monitoring. Startups and small businesses that embrace AI and ML now will position themselves as industry leaders, driving growth, and securing a competitive advantage in the dynamic business landscape of today and tomorrow.

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Terence Low is the founder and CEO of Codistas IT Services.

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Houston’s 10 most valuable startups revealed in new report

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The Greater Houston Partnership has released its list of the 10 most valuable startups that are fueling the city’s growth and entrepreneurial energy, including industry giants like Axiom Space and Fervo Energy.

Currently, Houston hosts more than 1,300 startups in industries such as energy, life sciences, manufacturing and aerospace, according to the GHP. The list ranks its top 10 startups by valuation based on the company’s last private funding round, reflected in Pitchbook data, as of Oct. 20 of this year.

The top 10 list includes:

10. NXTClean Fuels

Valuation: $530 million

NXTClean Fuels builds biofuel refineries that produce renewable fuel by using feedstocks like cooking oil and recycled organic materials.

9. Homebase

Valuation: $660 million

HR tech company Homebase provides employee management software that helps manage and optimize timesheets, payroll and more, with over over 100,000 small businesses and 2 million hourly workers using its product.

8. Zolve

Valuation: $800 million

Zolve is a banking platform that provides customers with access to financial products that aim to be accessible, flexible, and affordable than other financial platforms.

7. Stramsen Biotech

Valuation: $807 million

Stramsen Biotech develops plant-based drug therapies that target both infectious and noninfectious diseases, which include cancer, diabetes, HIV, kidney disease and neurological issues.

6. Octagos

Valuation: $843 million

Healthtech company Octagos has developed a remote cardiac monitoring software driven by AI that helps consolidate patient data in real-time, assisting healthcare professionals in providing quicker, easier and more accurate care.

5. Fervo Energy

Valuation: $1.4 billion

Pioneering geothermal company Fervo Energy combines horizontal drilling and fiber-optic sensing to produce electricity. The company is developing its flagship Cape Station geothermal power project in Utah. The first phase of the project will supply 100 megawatts of power beginning in 2026

4.Cart.com

Valuation: $1.7 billion

Cart.com is an e-commerce giant and logistics solutions provider that was founded in 2020 and obtained unicorn status within just three years.

3. Axiom Space

Valuation: $2.1 billion

Axiom Space is one of the anchor tenants at the Houston Spaceport, and has completed four missions of sending commercial astronauts to the ISS since 2022. In 2027, the company expects to see the first section of its private space station, Axiom Station, launched into low-earth orbit.

2. Solugen

Valuation: $2.175 billion

Solugen replaces petroleum-based products with plant-derived substitutes through its Bioforge manufacturing platform.

1. HighRadius

Valuation: $3.2 billion

HighRadius uses advanced technology to automate and manage accounts receivable processes for businesses worldwide.

The GHP also released its State of Houston’s Tech and Innovation Landscape, which mapped Houston’s digital and innovation sectors. Read the full report here.

Photos: Highlights from the 2025 Houston Innovation Awards

Innovation Awards Recap

The 2025 Houston Innovation Awards season came to a close on Nov. 13 at InnovationMap's annual awards program and networking event.

The fifth annual Houston Innovation Awards celebrated more than 40 innovative finalists and crowned 10 winners across prestigious categories. In the weeks leading up to the event, finalists were profiled in our editorial series spotlights. Read all about this year's winners here.

Finalists, judges, and special guests connected during an exclusive VIP reception before the doors officially opened for the evening. A full house of attendees then gathered to celebrate the best and brightest in Houston innovation right now. The night culminated in an awards program, emceed this year by Lawson Gow, Greentown Labs Head of Houston.

Scroll through the photos below for scenes from the event, including the winners, the guests, and more highlights from the program.

Special thanks to this year's sponsors for an unforgettable evening honoring Houston innovation: Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, William Price Distilling, and Citizens Catering.

2025 Houston Innovation Awards Winners:

Energy Transition Business of the Year: Eclipse Energy. Photo by Emily Jaschke
2025 Houston Innovation Awards Winners:

2025 Houston Innovation Awards Winners, Continued

Minority-founded Business of the Year: Mars Materials. Photo by Emily Jaschke

2025 Houston Innovation Awards Guests 

Photo by Emily Jaschke

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Texas ranks among 10 best states to find a job, says new report

jobs report

If you’re hunting for a job in Texas amid a tough employment market, you stand a better chance of landing it here than you might in other states.

A new ranking by personal finance website WalletHub of the best states for jobs puts Texas at No. 7. The Lone Star State lands at No. 2 in the economic environment category and No. 18 in the job market category.

Massachusetts tops the list, and West Virginia appears at the bottom.

To determine the most attractive states for employment, WalletHub compared the 50 states across 34 key indicators of economic health and job market strength. Ranking factors included employment growth, median annual income, and average commute time.

“Living in one of the best states for jobs can provide stable conditions for the long term, helping you ride out the fluctuations that the economy will experience in the future,” WalletHub analyst Chip Lupo says.

In September, Gov. Greg Abbott announced Texas led the U.S. in job creation with the addition of 195,600 jobs over the past 12 months.

“Texas is America’s jobs leader,” Abbott says. “With the best business climate in the nation and a skilled and growing labor force, Texas is where businesses invest, jobs grow, and families thrive. Texas will continue to cut red tape and invest in businesses large and small to spur the economic growth of communities across our great state.”

While Abbott proclaims Texas is “America’s jobs leader,” the state’s level of job creation has recently slowed. In June, the Federal Reserve Bank of Dallas noted that the state’s year-to-date job growth rate had dipped to 1.8 percent, and that even slower job growth was expected in the second half of this year.

The August unemployment rate in Texas stood at 4.1 percent, according to the Texas Workforce Commission. Throughout 2025, the monthly rate in Texas has been either four percent or 4.1 percent.

By comparison, the U.S. unemployment rate in August was 4.3 percent, according to the U.S. Bureau of Labor Statistics. In 2025, the monthly rate for the U.S. has ranged from 4 percent to 4.3 percent.

Here’s a rundown of the August unemployment rates in Texas’ four biggest metro areas:

  • Austin — 3.9 percent
  • Dallas-Fort Worth — 4.4 percent
  • Houston — 5 percent
  • San Antonio — 4.4 percent

Unemployment rates have remained steady this year despite layoffs and hiring freezes driven by economic uncertainty. However, the number of U.S. workers who’ve been without a job for at least 27 weeks has risen by 385,000 this year, the Bureau of Labor Statistics reported in August. That month, long-term unemployed workers accounted for about one-fourth of all unemployed workers.

An August survey by the Federal Reserve Bank of New York showed a record-low 44.9 percent of Americans were confident about finding a job if they lost their current one.
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