Oil and gas operators accelerate AI-driven software adoption, ISG finds

(WO) - Oil and gas operators are accelerating adoption of AI-enabled software platforms to modernize aging infrastructure, improve asset performance and strengthen operational resilience, according to new research from Information Services Group (ISG).

The research finds upstream companies increasingly turning to automation, digital twins and predictive maintenance tools as they contend with tighter margins, workforce constraints and more complex operating environments. Legacy supervisory systems are giving way to integrated platforms that combine cloud computing, analytics and real-time data to anticipate equipment failures, reduce downtime and extend asset life.

ISG’s 2025 Buyers Guides for Oil and Gas evaluated 33 software providers across key upstream domains, including asset performance management, field service, digital twins and predictive maintenance. The study highlights growing emphasis on enterprise asset management systems that coordinate maintenance, supply chains and field operations, along with digital replicas of wells, pipelines and facilities that enable simulation and performance optimization.

Predictive maintenance tools, powered by analytics and AI, are increasingly used to identify failure risks before they disrupt operations, improving safety and reliability while lowering operating costs. ISG notes that operators are prioritizing software platforms that reduce manual processes, streamline workflows and support data-driven decision-making across subsurface, drilling and production activities.

According to ISG, next-generation software adoption is becoming a core enabler of upstream resilience, helping oil and gas companies manage volatility, improve operational efficiency and prepare assets for long-term performance in a rapidly evolving energy landscape.