Energy and utility companies face tremendous challenges as the global shift towards cleaner sources of energy accelerates.
They must meet growing demand from shareholders and consumers to reduce their carbon footprint, innovate, and maintain compliance with changing regulations – all while remaining reliable and affordable.
AI in energy and utilities is helping tackle these challenges by improving operational efficiency, reducing costs, and boosting productivity. The technology is proving to be a lynchpin in driving the industry’s transition to sustainable energy.
AI has long been used in the gas and oil industry to analyze vast amounts of subsurface data, enabling companies to increase the amount of oil or gas they can recover. Utilities companies have used AI and machine learning for almost a decade for predictive maintenance and other operational improvements.
Today, energy companies are using artificial intelligence to make operational improvements that help advance the shift away from fossil fuels. And they’re even overcoming their conservative approach to new technologies by diving into the world of generative AI.
By analyzing data from multiple systems and providing contextualized insights using natural language, GenAI has the potential to help the energy industry by improving decision-making and increasing operational excellence.
Maintaining infrastructure integrity and supply chain resilience are key reliability, cost efficiency, and sustainability. AI can help energy and utility companies in a number of ways here:
One innovative startup, Shyftplan, offers an AI-powered workforce management platform that streamlines the scheduling process, allowing businesses to save time and reduce administrative overhead. The highly scalable platform also enables employees to easily view their schedules, request time off, and communicate with their team, fostering a collaborative and efficient work environment.
One of Shyftplan’s customers, a major energy company, reduced managers’ shift scheduling efforts by 60% to 80%.
As the global drive towards sustainable energy grows, the pressure's on oil, gas, and utilities companies to change. Learn how energy and utilities companies can make the transition.
Evolution Energie, a startup that focuses on sustainable energy production and consumption, provides software that uses AI to forecast needs, automate trades, maximize revenue, optimize assets, and reduce emissions. Customers include major energy companies such TotalEnergies, a global company that produces and markets oil and biofuels, natural gas and green gases, renewables, and electricity.
Another way AI is helping energy and utilities companies make the transition to green energy is by driving innovation and new business models.
For example, AI technologies can drive new dynamic pricing models that adjust energy prices based on market conditions and consumer demand. Competitive rates help encourage consumers to conserve energy.
With AI, companies can gain insight into consumer trends and preferences in order to create personalized experiences and boost customer satisfaction. AI-enabled digital platforms provide interactive tools that improve customer engagement.
Success! A top utility provider implemented self-service + AI chatbots to boost customer service, improve efficiency, and reduce costs.
Sustainable energy transition is transforming the oil, gas, and energy industry, and companies will lean on artificial intelligence to improve energy efficiency, generate optimized work schedules with ease, and provide risk intelligence to traditional supply chain decision making.
The adoption of AI technologies holds immense potential to increase efficiency, reduce costs, and pave the way towards a sustainable and greener future.
James McClelland, senior global director of utilities and energy at SAP, co-authored this article.
