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Harnessing worth at the artificial intelligence turning point

Delve into strategies that convert AI from an obstacle into a driving force for innovation, dependability, and customer-focused expansion within the utility sector.

Harnessing Value during the AI Breakthrough Period
Harnessing Value during the AI Breakthrough Period

Harnessing worth at the artificial intelligence turning point

In the ever-evolving world of energy, utilities are gearing up for significant changes in the coming years. According to a recent survey published in the June 2023 issue of the PUF Special Issue, more than 86% of utility executives prioritize Transmission and Distribution (T&D) upgrades and improved system resilience for 2025.

This shift towards AI-driven transformation is evident in the strategies of utilities like ConEd, who have partnered with C3 AI to implement AI-based tools across customer service and grid operations units. These tools include virtual assistants for customer inquiries, predictive grid maintenance, revenue protection, and optimizing workflows.

The adoption of AI is not a sudden leap but a two-speed approach, allowing utilities to tackle operational efficiency and customer service improvements in individual departments. AI models can forecast demand and generation from specific assets with increasing precision, enabling dynamic dispatch and resource optimization.

However, this transformation is not without its challenges. AI integration into enterprise systems can be a long process, and regulatory signoff may be required. Maintaining system reliability remains a concern for utilities as they adapt to the AI environment.

Despite these challenges, the benefits are compelling. AI at scale is a strategic imperative for utility leaders facing a rapidly changing set of pressures and problems. AI can help optimize existing generation, streamline new supply integration, reduce operating costs, predict and manage renewable energy variability, optimize energy storage and dispatch, improve grid stability and reliability, and lower the operational costs of renewable energy projects.

Moreover, AI can transform utility operations from reactive interventions to proactive focus on infrastructure and operational performance. This proactive approach can potentially drive meaningful returns by being more proactive around grid transformation, improving resilience and sustainability, and delivering greater value to stakeholders.

The AI deployment within the power industry offers opportunities for improving operational efficiency, resilience, maintaining competitiveness, and preserving capital. Hyperscalers, investing trillions into data infrastructure in anticipation of AI growth, are already demanding access to large energy capacities from utilities.

In response, utilities are being pushed to invest more in systems and solutions that fall under the OPEX umbrella, such as Software as a Service (SaaS) and Platform as a Service (PaaS), as technology and critical software move to the cloud.

To maximize the AI and data center opportunity, utilities should begin planning and implementing their own AI strategies today. The International Energy Agency predicts a potential tripling of electricity consumption by data centers in the United States by 2035.

AI is at an inflection point, and its adoption brings unique challenges to an industry known for slow innovation. However, by treating AI as a strategic enabler of intelligent, adaptive, and customer-centric operations, utilities can navigate these challenges and reap the benefits of this transformative technology.

AI copilots for field technicians and control room operators can dramatically improve employee efficiency. AI-based solutions are already making gains in customer correspondence, personalized energy insights, chatbots and virtual agents, call deflection, and proactive outage communication.

AI-based solutions can also improve vegetation management for wildfire risk mitigation and predictive maintenance and asset management for storm resiliency. Nearly two-thirds of utility executives indicate that their organizations are prepared for substantial load growth from the AI economy and data center infrastructure.

In conclusion, the utility sector is on the cusp of a significant AI-driven transformation. By prioritizing T&D upgrades and improved system resilience, utilities are positioning themselves to meet the challenges and opportunities of the AI era head-on.

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