Leveraging AI to accelerate the energy transition

Over the course of this series, we will explain how AI in energy is becoming an indispensable engine for both innovation and value at utilities. Today, we are starting with the basics. Let’s dive in to see how AI can accelerate positive change for utility leaders—and how those leaders can make the most of this technology’s changing tides.

Could using AI in energy be the future?

CGI’s Voice of Our Clients results indicate that 36% of the organizations have implemented or are implementing traditional AI this year. National Grid is investing $100M in AI startups advancing the future of energy. 

The global market for AI in energy is projected to reach $76 billion by 2034, growing at a CAGR of 17% from today. If you want your organization to retain its competitive edge, it’s time to create an AI-driven energy transition strategy. 

Why should utilities implement artificial intelligence? 

From where I stand, it’s clear. There is boundless potential for AI to transform utilities. This technology has the power and potential to redefine operations, accelerate top priorities like grid modernization and decarbonization and answer some of the most fundamental questions utility leaders face, from customer service to forecasting. 

Benefits of using AI in energy:

• Grid management: Artificial intelligence in utilities can be used to accurately predict solar and wind energy, connect small devices for virtual power plants and reduce energy loss during power distribution. 
• Cost savings: Investing in an energy transition strategy can save thousands of terawatt-hours, yield optimized capacity and result in long-term financial impact for the company. 
• Proactive maintenance: AI in energy is trained to monitor equipment and detect faults before breakdowns happen, reducing outages and protecting workers during hazardous tasks. 

How does AI in energy pave the path towards digital transformation?

Utilities are no strangers to cutting-edge technology—especially when it comes to AI digital transformation. They turn food waste into electricity, have increased response event frequency by 173% from 2021 to 2024 and are debuting new smart grid technology on a near-daily basis. When energy leaders integrate AI in energy as a network of overlapping technologies and innovate across these areas with a holistic approach, they can scale technology upgrades faster and more efficiently than our discrete grid technology from the pre-AI utilities era.

But artificial intelligence in utilities is upping the ante as an ecosystem of technologies—not just single or one-off innovations, but an integrated network of capabilities, enablers and policies. At CGI, we define the AI ecosystem around six core elements. Each element matters on its own, but true impact in an energy transition strategy comes from the connective tissue that binds the ecosystem, turning potential into sustainable outcomes.

6 core elements of AI energy ecosystems: 

1. Data
2. Workforce readiness
3. Infrastructure
4. Governance
5. Strategic alignment
6. Security

AI in energy requires a thoughtful framework for quick-scaling innovation

Making AI in utilities work for you is about getting the basics right. AI is transformational—it’s easy to get caught up in all the “cool” things that this technology can do without focusing on a few key areas. 

An executive sponsor will ensure alignment of AI initiatives with the business strategy. Taken together, there are three foundational priorities that set the basis for smarter, more efficient and more scalable technology adoption across your organization. 

3 priorities for creating an AI energy transition strategy:

1. Cleaning up your data: This needs to be an explicit part of any AI roadmap with its own budgets, talent and management if you want to move toward commercializing AI utilities use cases (and avoid regulatory breaches, flawed decision-making, loss of stakeholder confidence and more). 
2. Knowing whom to call: A strong enterprise-wide data management program is essential to ensuring data quality, availability, governance and security. Organizations that expect major innovation or technology advancements without this foundation often find that even the most promising AI utility applications fall short. 
3. Understanding your why: It’s about more than just wanting intelligent digital infrastructure. Utility business and IT leaders need to have a clear vision for why they are embarking on any AI initiative, which is inherently complex and cross-functional. And they need to communicate the why clearly and consistently to gain financial and organizational support.

How does using artificial intelligence in utilities drive business value? 

Making an energy transition AI strategy requires focusing on business value—and it’s a game-changer. It’s imperative to focus on implementing AI for tangible return-on-investment (ROI), not just for the sake of AI itself. Achieving ROI is all about understanding your current benchmarks, setting attainable metrics and tying these metrics directly to business value.

Critical questions to ask to ensure that AI in energy is a driver of ROI:

• Are the necessary data and talent available to support the project?
• Is the desired outcome aligned with broader business goals? 
• Are you driving meaningful process improvements that leverage AI's true capabilities or simply automating tasks that do not require it?

What does a successful energy transition strategy look like? 

Before you implement an energy transition strategy enterprise-wide, you’ll want to focus on a few low-value, high-reward instances. One of the use cases we have developed at CGI involves integrating an AI-powered natural language chatbot into our CGI OpenGrid360 solution. 

This chatbot allows utility personnel to interact with backend operational data across a broad range of utility functions, systems and datasets simply by asking questions in plain English. This intuitive, intelligent interface is just one example of how energy-based AI can be embedded directly into utility workflows, turning complex data into actionable intelligence and driving the energy transition forward with confidence. 

Create an energy transition strategy with CGI today

The idea of moving fast is interwoven throughout all conversations about the nexus of AI and energy. The pace of innovation is accelerating, which demands faster, more informed decisions regarding strategy, funding, procurement, supply chains, risk and more. To learn more about how AI can be a launchpad in your organization, check out CGI’s options for artificial intelligence in utilities and energy. 

Keep reading: This is the first in a series of four articles exploring how the utility industry is embracing AI as a key piece of the future energy puzzle. We will cover not just how AI is changing energy, but also how leaders are making it happen on their terms and timelines, as well as explore critical utility use cases in more depth, including drone and image AI for wind turbine asset inspection, AI-powered call center transcription and insights, meter hub intelligence and more. Watch for more to come in this series here and learn more about AI in Energy & Utilities here.