CIO Rahul Jalali explains how Union Pacific is expanding its use of AI, improving teamwork and preparing for a possible merger in the rail industry.

CIO Rahul Jalali is preparing Union Pacific Railroad for a major transformation, where AI in railway is moving beyond small experiments and into large-scale use with the potential to reshape the rail industry in the United States.

As AI shifts from experimental projects to enterprise-wide deployment, many organizations are facing a familiar challenge. Spending on models, data platforms, and digital tools is increasing rapidly, yet the business impact often falls short of expectations. Jalali argues that the issue is rarely about the technology itself. Instead, it comes down to how organizations are structured, how teams work together, and whether employees are ready to adapt to new ways of operating.

He brings a strong cross-industry perspective to this problem. After more than twenty years at Walmart, where he helped build one of the most advanced retail technology ecosystems in the world, he moved to Union Pacific, a 163-year-old railroad with complex operations and deeply embedded legacy systems. For him, digital transformation follows the same core principles everywhere. What changes is not the idea itself, but the environment in which it is applied.

At Union Pacific, the journey began by strengthening foundational elements across teams, systems, and processes before introducing advanced capabilities like artificial intelligence. With a possible merger involving Norfolk Southern, this foundation becomes even more important. A combined transcontinental railroad would demand tight coordination across large-scale systems, data flows, and operations that must function seamlessly together.

A key principle in his approach is that technology must be built together by business leaders and operations teams. He also places strong emphasis on communication. During the early months of the pandemic, he began sharing regular updates with employees about what he was learning and how the organization was evolving. These updates gradually developed into structured listening sessions that strengthened connections between leadership and frontline teams.

This openness has helped maintain strong employee engagement through ongoing transformation and merger discussions. For him, the future of AI in large enterprises will defined by how effectively organizations adapt their ways of working around advanced technology.

At a time when industries are redefining themselves through intelligence and scale, Business Fortunes observes Jalali’s approach that highlights a larger shift in how leadership is measured, not by technology adoption alone but by how effectively organizations evolve around it.

About the Author

Sowmiya Sri Mani is a writer for Business Fortune, covering AI, Robotics, Software, Entrepreneurship, and Opinion. She delivers clear and engaging insights on emerging trends and industrial developments, helping readers understand the evolving landscape of technology and innovation.