Speaking on Sunday at the Third Petrotech Conference, Mehdi Mohammadi highlighted that technological advancements have enabled humanity to progress from mechanization to mass production and then to smart technologies in the Fourth Industrial Revolution.

He noted that each historical period has brought new capabilities. The First Industrial Revolution, which lasted about 140 years, introduced mechanization. The Second Industrial Revolution, beginning in the early 20th century and lasting around 70 years, brought mass production systems. The Third Industrial Revolution, marked by the advent of computer systems and higher productivity, continued until 2010.

Mohammadi recalled that the Fourth Industrial Revolution began in 2007 with the emergence of smartphones, with data ecosystems becoming its most critical fuel. Between 2017 and 2020, 80% of the world's data was collected, and with access to this data, AI emerged as one of the most important technologies.

He stressed that AI has made everything smarter, and in the Fourth Industrial Revolution, the focus is on data and AI. Failure to leverage these opportunities will result in a gap between us and the smart world. Digital systems and AI are now tools for prediction and quality improvement, while the use of industrial robots and drones has reduced costs. For example, DNA profiling, which cost $7 million in 2007, now costs $70 using open-source AI.

Oil industry: Sixth-largest AI user in Iran

Mohammadi emphasized the need to prepare for technological changes and seize opportunities. In 1960, the average lifespan of the top 500 US companies was about 61 years, but by 2024, it has dropped to 17 years. This indicates that companies must adapt to rapid technological changes to survive.

He added that technologies like AI can simulate human behavior, enabling tasks to be performed faster and more accurately. AI now has the ability to understand and analyze audio, images, and text, with these capabilities being available simultaneously for the first time.

Mohammadi noted that AI plays a crucial role in the Fourth Industrial Revolution, and its potential must be maximized. In 2024, North American companies had a 61% AI adoption rate, compared to 58% in Asia-Pacific and a global average of 55%. However, in Iran, the rate is only 17%.

He stressed that smart technologies must be a key priority for development in the oil industry and other sectors at the highest economic levels. In Iran, the oil and gas industry, with an AI adoption rate of about 9%, is the sixth-largest user of this technology, highlighting the need for significant transformation to leverage AI's potential.

AI: A driver of transformation in oil industry

Mohammadi stated that with the increasing volume of data in the oil industry and the complexities of managing it, AI has become one of the most important transformative technologies in this sector. International reports show that over 2,000 startups and scale-ups are active in oil industry innovation, with 10 key areas identified for the application of advanced technologies.

He added that a significant portion of these innovations is related to AI. This technology, alongside the Internet of Things, augmented reality, smart management systems, and other advanced technologies, plays a vital role in the development of the oil industry.

Mohammadi cited an international study involving 500 oil industry experts, which indicated a significant increase in AI investments. Global investment in this sector has risen from $8.5 billion in previous years to over $203 billion in 2023. Saudi Aramco alone invested $100 million in AI in 2023.

220 AI firms active in Iran

Mohammadi noted that AI applications in the oil industry are extensive, covering upstream, midstream, and downstream sectors.

In upstream, AI is used for exploration, drilling, seismic data interpretation, production optimization, reservoir management, and system monitoring. In midstream, it is applied for pipeline monitoring, real-time leak detection (via drones and image processing), flow management, and energy optimization. In downstream, AI is used for quality control, customer relations, supply chain management, refining process optimization, energy consumption management, market forecasting, and even automated trading.

Despite these significant capabilities, challenges remain for AI development in the oil industry. Experts emphasize the need for a clear roadmap, as financial resources, human capital, and industrial capacities are limited. Developing an innovation ecosystem in this field requires the establishment of new technology-based firms (NTBFs) and specialized startups in the oil sector. Currently, around 220 AI companies operate in Iran, but few specialize in the oil industry.

Mohammadi stressed the importance of forming financing consortia and industrial smartening as key solutions. Many AI companies in Iran are small, with fewer than 10 employees, and about 70% fall into this category. Therefore, it is essential for these companies to collaborate and play a more prominent role in the technological transformation of the oil industry through smartening consortia.

He concluded that if these measures are implemented effectively, AI's role in oil industry research will increase, leading to fundamental changes in data management, productivity improvements, and operational cost reductions.