BP Expands AI Use in New 5-Year Partnership with Palantir

British oil and gas giant BP has strengthened its commitment to artificial intelligence, signing a five-year deal with Palantir, a U.S.-based technology firm known for its work with intelligence agencies.

AI to Support Faster Decision-Making

As part of the agreement, BP aims to utilize AI to enhance the decision-making capabilities of its engineers. The company plans to deploy large language models that will analyze data from various sites and provide insights to assist human decision-makers.

Decade-Long Partnership Enhanced

This new agreement builds on BP's existing relationship with Palantir, which spans over a decade. Palantir’s technology has previously been used to create “digital twins” of BP’s global oil and gas operations, including key projects such as the Khazzan gas fields in Oman and offshore platforms in the North Sea and the Gulf of Mexico. These digital replicas help BP optimize operations and improve performance.

The companies highlighted that this expanded AI deployment will focus on "safe and reliable" usage, addressing concerns about AI errors, often referred to as "hallucinations," where AI models may generate incorrect or misleading information due to faulty data or processing errors.

Generative AI Across Industries

Generative AI is becoming more widespread across many sectors. It’s being used in various ways, from customizing marketing messages to assisting researchers and writers. While there is ongoing debate about the impact of AI on jobs, many companies see it as a tool to augment human roles rather than replace them.

Comments from BP and Palantir

BP’s Senior Vice President of Digital Delivery, Sunjay Pandey, emphasized the benefits of the digital twin simulations, stating, “The use of advanced digital twin simulations helps us to safely monitor and optimise various aspects of the production process to enhance operational performance. We look forward to building on the progress we have made over the years.”

Matthew Babin, representing Palantir, added, that their technology “offers the opportunity to help accelerate human decision-making on top of the robust digital twin and deep operational workflows already in place”.

Broader AI Investments and Partnerships

BP has also been expanding its technology initiatives beyond Palantir. In 2019, the company invested $5 million in Belmont Technology to boost its AI platform, nicknamed Sandy. More recently, BP struck a deal with NASA to collaborate on technology and knowledge-sharing in extreme environments. The partnership with Palantir is part of BP’s broader strategy under CEO Murray Auchincloss, who took over after the unexpected departure of Bernard Looney.