Four imperatives for energy CDOs and CIOs

Digital Operations Services

The EY Digital Operations team uses technology to help oil, gas and chemicals businesses drive operational excellence and sustainable growth. Learn more.
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The shift in expectations is not theoretical. Industry data reinforces that energy organizations are increasingly looking to technology leaders to unlock productivity, competitiveness and transformation at scale. In the EY 2025 Future of Energy Survey, energy senior leaders at organizations investing in technologies such as AI overwhelmingly agree (78%) that AI-driven productivity gains are a catalyst for strategic transformation. Against this backdrop, the time to act is now — and leading CDOs and CIOs are focusing their efforts on four critical imperatives.

Imperative No. 1: Orchestrate business-centered digital transformation

Oil & gas and chemicals CDOs and CIOs must begin by visualizing their company’s technology future and how digital investments can shape the way business is executed. Moreover, we are seeing significant success and value in IT leadership teams partnering with business leaders when setting the vision for how the organization will restructure their business models through digital retooling.

The truth is there is a cost for innovation and digital transformation. However, the forward-thinking CIO/CDO can also prove to their business partners that these technology investments support long-term growth and sustainability through measurable financial value. How are they structured to perform work today? How are data analytics and automation creating new revenue streams? What technology enablers will support current processes to be more efficient or meet future goals? Addressing those questions early will provide a framework for making the right investments in tools.

Imperative No. 2: Embrace emerging technologies

It is vital to understand how emerging technologies, such as agentic artificial intelligence (AI), machine learning and even basic automation capabilities, can create efficiencies, performance improvement and differentiated decision-making. An endless landscape of vendors offer a wide range of technologies, and your organization must find the right tools and technologies to adopt. Partnering with service providers with experience in emerging technologies to pilot new solutions is a great way to achieve the desired value before making a large financial investment.

To deliver maximum value, emerging technology investment must be sustainable and scalable. CDOs/CIOs should focus the company’s efforts on efficiency, operability and likelihood of adoption. Viewing technology as a competitive differentiator can help set priorities. Some likely areas of focus include predictive maintenance, demand planning, drilling/completions and integrated end-to-end business models.

Imperative No. 4: Strengthen cybersecurity

The traditional approaches to cybersecurity aren’t enough, given the rapid pace of technological change. Many oil & gas and chemicals companies have unprotected assets and data, especially those involved in mergers or acquisitions or those who are implementing new technology.

The rise in AI and automation has dramatically increased the number of access points for hackers, who are using AI themselves to manipulate systems, such as SCADA networks managing oil pumps. To enhance security, companies must actively seek out and upgrade to the most advanced monitoring tools while maintaining an up-to-date inventory of critical assets. These aren’t one-and-done tasks; cybersecurity teams must be constantly vigilant about risks and how to best mitigate them.

Good security goes beyond internal data theft or external hacking, however. It’s increasingly important to develop and communicate AI governance standards and processes to prevent employees from creating tools that can be easily hacked or that breach protocol.

Many of these tasks fall to the chief information security officer (CISO), but that individual should work closely with the CDO and CIO to ensure alignment and strong communication, especially as it relates to elevating significant risks for mitigation.

Technology in oil & gas and chemicals is changing — don’t be left behind

You’re not alone on the journey. Digital transformation now requires technology leaders to reimagine how work gets done across the enterprise, aligning technology strategy tightly with business priorities and embedding emerging technologies across the value chain. This is not a onetime initiative but a sustained leadership mandate that demands clarity of vision, disciplined investment and strong partnerships with the business.

Meeting this challenge requires more than technical expertise. It calls for strategic leadership, the ability to connect technology investments to measurable business outcomes, and the confidence to make trade-offs in a constrained cost environment. CDOs and CIOs who succeed will be those who focus their efforts on the four imperatives outlined here: orchestrating business centered transformation, scaling emerging technologies, building the workforce of the future and strengthening cybersecurity as a foundational capability.

While the path forward is complex, technology leaders do not have to navigate it alone. With the right insights, tools and partners, organizations can develop pragmatic roadmaps that balance innovation with cost discipline and risk management. The next chapter of digital transformation in energy will be written by CDOs and CIOs who lead with intent, deliver with discipline, and tie every investment to business value.