How CFOs at Chevron, ServiceNow and Nasdaq decide which AI bets create value

Good morning. AI projects must earn their share of corporate budgets.

"It doesn't get a free pass just because it's got AI on the front of the opportunity," stated Eimear Bonner, CFO of Chevron, during a panel discussion at the Fortune Most Powerful Women Summit held in Santa Barbara on Tuesday.

"It’s got to compete for capital." Bonner emphasized that the first criterion is to establish a clear path to value creation. Chevron actively seeks AI initiatives that yield measurable enhancements in business performance, which may include unlocking previously unreachable oil reserves, cost reduction, or minimizing cycle times. Bonner articulated the company's objective to focus on applications capable of driving transformative value.

In addition, Gina Mastantuono, president and CFO of ServiceNow, highlighted that the methodology for calculating ROI is evolving beyond mere assessments of potential revenue and profitability gains. CFOs must also consider the ramifications of inaction: the risks associated with falling behind competitors who embrace AI, ultimately jeopardizing long-term competitiveness.

Mastantuono indicated that ServiceNow allocates funding to projects that not only differentiate the company competitively but also resolve customer issues and deliver measurable value within a defined timeline. "I don't think the winners in AI are going to be the ones that spend the most," she asserted.

Mastantuono stressed the importance of measuring outcomes rather than just activity—focusing on whether AI initiatives enhance revenue, efficiency, and speed, rather than merely counting the number of AI pilots initiated. ServiceNow anticipates savings of $500 million this year, primarily attributable to the utilization of its own products.

Moreover, Sarah Youngwood, EVP and CFO of Nasdaq, conveyed during the panel that the company organizes investments into several categories: "horizon zero," which includes foundational requirements like cybersecurity; short-term return initiatives; medium-term strategies; and long-term research and development. Nasdaq's longstanding investments in cloud technologies and algorithmic AI, Youngwood noted, have positioned the company to effectively serve its clients today.

"It's all about the gold standard data that we have," she remarked, referencing data from 3,500 institutions that collectively represent $12 trillion in assets. Youngwood oversees Nasdaq's AI key performance indicators (KPIs), which track input metrics such as training and platform engagement, as well as outcome measures including coding speed, client retention, and token costs.

For Bonner, who will assume the role of president of Chevron's oil, products, and gas business on January 1, discipline involves regular engagement with project teams to address challenges and verify progress. AI is being utilized by Chevron to enhance the speed of oil and gas discovery, increase recovery rates from reservoirs, and predict maintenance requirements. Furthermore, Chevron is actively participating in the AI surge, planning to support a Microsoft data center in West Texas with a natural gas project generating 2.67 gigawatts of power.