Adnoc signs Microsoft deal to co-develop AI agents across its operations

Abu Dhabi National Oil Company and Microsoft have signed deals to integrate artificial intelligence across the oil company's value chain and to power the tech company's global AI and data centre growth.

Adnoc and Microsoft's expanded agreement will include Masdar and XRG, which will develop sustainable energy projects and infrastructure to drive the expansion of Microsoft’s AI and data centres, Adnoc said on Sunday.

Adnoc and Microsoft will co-develop and embed AI agents to drive autonomous operations and boost efficiency, adding to Adnoc's use of AI across its operations.

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Microsoft is to also provide advanced AI tools and training programmes, while the companies will explore “transformative” solutions for the energy sector.

“As AI continues to reshape how value is created and enhanced across industries, Adnoc, Masdar and XRG are not only embedding AI into every layer of our operations – we are also advancing the energy systems that will power AI itself,” said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc's managing director and group chief executive, executive chairman of XRG and chairman of Masdar.

“Through our partnership with Microsoft, we are unlocking new opportunities to fuel the future of AI, drive greater performance, and future-proof our business.”

One in five energy companies is using agentic AI to automate complex decision-making, with cases of the technology being used in the sector increasing, a recent report has found.

About 88 per cent of executives believe AI has a very positive effect on energy and their relationship is now “symbiotic”, said the Powering Possible report from Adnoc and Microsoft released last week.

The study gathered insights from more than 850 global experts across energy, technology, AI, academia and finance, including those from ChatGPT maker OpenAI, France's TotalEnergies and the International Energy Agency.

Adnoc was the first energy company to roll out generative AI enterprise-wide in November 2023 with Microsoft Copilot. Since then, more than 40,000 employees have completed AI training, with utilisation rates above 90 per cent and over 70,000 hours a month in productivity gained to date.

“No single company or industry can meet this moment alone,” said Brad Smith, vice chairman and president of Microsoft.

“Accelerating the transition to a more sustainable, secure, and inclusive energy future requires deep collaboration between governments, energy providers, technology companies, and innovators everywhere.”

The agreements were announced at the Enact Majlis in Abu Dhabi, before Adipec, which starts on Monday.

At the same majlis, Adnoc and US start-up Gecko Robotics on Sunday signed three deals to explore using robotics and artificial intelligence across the oil major's operations to boost efficiency and train Emiratis.

At the Enact Majlis on Sunday, Adnoc, Masdar and XRG gathered more than 100 global leaders from the energy, technology, investment and government sectors.