A vast majority of global energy and utility companies say they’re ready to embrace AI, or already have, according to new insights gathered by IBM.
At DISTRIBUTECH International 2024, taking place in Orlando, Florida Feb. 26-29, IBM will unveil the results of a study into how energy and utility leaders view AI. The study, conducted by Morning Consult, is based on interviews with 2,342 IT professionals across 20 countries.
Nearly three-quarters of energy and utility companies have implemented or are exploring using AI in their operations, the study found. And while utilities are often cast as laggards for their perceived slow embrace of emerging technology, an earlier IBM study found that energy and resources CEOs are embracing AI opportunities at a higher rate than their global peers.
Casey Werth, IBM’s global energy industry general manager, and a GridWise Alliance board member, warned that AI adoption comes with prerequisites for utilities. Establishing governance structures — both for systems and people — is critical for successful implementation.
Utilities that have skipped those foundational steps involving data automation and security can find themselves in a precarious bind when integrating advanced technology, like AI, Werth noted.
“When you try to move with a very advanced technology, like AI or generative AI, it kind of exposes some of those precursors that need to be managed,” Werth told POWERGRID International.
Watch the full interview on YouTube, and subscribe to the POWERGRID International channel
After laying that foundational layer, utilities must make the case for how AI will tangibly benefit the business and create value, as opposed to “just applying AI for the sake of doing it.” Werth has seen early adopters targeting human resources activities, policy engagement, and customer interactions.
But there’s also a fair share of noise surrounding AI, which in some applications has already been utilized by utility and energy companies for years. Understanding the suite of tools available, and their impact on the business, is paramount to ensuring a worthwhile investment.
“A lot of traditional, deterministic AI is still very, very valuable,” Werth said. “It’s not that everything needs to have a chatbot.”
Artificial Intelligence at DISTRIBUTECH International
DISTRIBUTECH International 2024 is leaning into “The Art of What’s Possible” with this year’s theme, highlighting the role of technology and artificial intelligence on the rapidly changing transmission and distribution utility landscape.
The event’s opening keynote features Zack Kass, the former head of go-to-market for industry darling OpenAI, on Tuesday, February 27.
“In a world where we are trying to serve more energy at lower cost, the advent of AI stands to be the most important deflationary event in human history, probably, and utilities stand to be some of the best net beneficiaries of that,” Kass said in an interview with POWERGRID International. You can watch the full interview here.
Here are five can’t-miss conference sessions on how utilities are implementing and utilizing AI:
- Duke Energy: Digital Innovation for Distribution Grids at Duke Energy
- PG&E, Power River Electric Corporation, SMUD, and Rappahannock Electric Cooperative: How Satellite Intelligence Can Help Mitigate Risk, Optimize Cost, Reduce Wildfires and Improve Reliability
- SDG&E: How SDG&E is Using Customer Natural Language Analytics
- PSEG Long Island and NV Energy: EV Managed Charging: Using Analytics, Telematics, and TOU Rates to Drive Customer-Centric EV Solutions
- AES, Hydro One, and FirstEnergy: Advanced Analytics for Electric Grid Asset Management
Register today to attend DISTRIBUTECH International, North America’s largest transmission and distribution utility event!
