How AI is revolutionizing the energy utility industry
As the global energy landscape evolves, artificial intelligence (AI) is reshaping the way utilities operate, innovate, and engage with customers. Optimizing operations, streamlining customer service, and unlocking new revenue streams, AI is ushering in a new era of efficiency and customer-centricity. In this article, we’ll explore how AI is transforming the energy industry and what the future holds for energy providers embracing this technology.
A new era of operational efficiency
At the heart of AI's impact on the utility sector is its ability to drive operational efficiency. Utilities have historically relied on numerous legacy systems, patched together over the years, but AI is enabling them to become more agile and data-driven. By using AI for grid optimization, predictive maintenance, and demand forecasting, utilities can drastically reduce costs and improve reliability.
“AI is changing the way we think about value” says Stuart Brown, Global Resources Technology Lead at Accenture. “It’s not just about cost optimization, but how we can deliver more value for customers, employees, and ratepayers through smarter, more efficient operations.” Brown highlights that AI's role will be critical across the industry, from energy generation to transmission and distribution.
Predictive maintenance and grid optimization
AI’s predictive capabilities are particularly transformative with regards to maintenance and grid management. By analyzing sensor data from infrastructure, utilities can predict equipment failures before they happen, preventing outages and saving significant repair costs. This ensures that power remains reliable, and that customers experience fewer disruptions.
What’s more, AI’s ability to manage energy flows in real time allows utilities to balance supply and demand more efficiently, which will become vital as more renewable energy sources are integrated into the grid. As Brown explains, “AI helps us manage the grid more intelligently. We’re moving away from big, sporadic changes to a model of continuous improvement and reinvention”.
Enhancing the customer experience
Customer Service is one the most valuable areas in which AI is already making a difference. AI-driven tools now enable utilities to provide seamless, personalized, proactive customer interactions, enhancing both satisfaction and operational efficiency.
“AI is empowering agents by providing them with the right data at the right time,” says Ali Teeney, head of AI and Machine Learning at Kraken. “We’ve built a system that gives our agents everything they need to solve any customer issue on the spot, ensuring a more consistent and high-quality experience for the customer.” By adopting next-generation customer service platforms that leverage AI, utilities can reduce the time it takes to resolve customer inquiries and improve the accuracy of responses.
AI-Powered customer support
One key innovation is the use of AI to assist agents with handling inquiries. By analyzing account data and customer interactions, AI tools can suggest personalized responses, allowing agents to focus on more complex customer issues. For example, Kraken’s AI-driven messaging platform, “Magic Ink,” helps agents respond faster by summarizing customer interactions and suggesting next steps.
"Customers appreciate faster, more accurate responses," says Teeney. "We've built AI tools with the customer experience at the heart. These tools help agents get to the core of the issue quicker, so they can provide proactive solutions, like suggesting a new tariff or offering an explanation for a high bill." This approach not only saves time but also improves the customer experience as AI helps deliver more empathetic and tailored support.
AI's role in supporting vulnerable customers
AI is also playing a critical role in helping utilities better serve vulnerable customers, particularly those struggling with high bills or financial hardship. AI tools can identify customers who may need assistance and proactively offer solutions, such as recommending energy efficiency programs or flexible payment plans.
Eva Buren, who leads Accenture’s Utilities Global Customer Practice, emphasizes this point: “With AI, we can finally give our agents the insights they need to help customers in real time. Whether it’s advising them on why their bill is higher or offering personalized recommendations for energy-saving programs, AI enables us to provide the kind of support customers have been asking for”.
This personalized approach ensures that utilities can address customer concerns more effectively and efficiently, building stronger relationships across their customer base.
Unlocking new business models
Beyond operational efficiency and better customer service, AI is opening the door to new business models and revenue streams for utilities. As more consumers adopt smart technologies—such as electric vehicles (EVs) and solar panels—AI enables utilities to offer dynamic, personalized products and services that align with energy use in real-time .
"AI is creating opportunities for utilities to shift from just delivering energy to becoming energy advisors," says Buren. "By using AI to offer personalized energy plans and insights, utilities can help customers optimize their energy use while also creating new revenue streams through value-added services".
Utilities can now offer tailored energy packages that adjust to a customer's unique consumption patterns, allowing them to save money during off-peak times and reduce their carbon footprint. This shift not only benefits the customer but also enables utilities to diversify their revenue base and offer more competitive services, for example time-based tariffs.
The path forward: data, cloud, and security
While the potential of AI is immense, utilities still face challenges when it comes to fully unlocking its benefits. Data centralization, cloud infrastructure, and security are critical considerations for utilities embarking on their AI journey. While some utilities still use on-premise data platforms, many are in the process of migrating to cloud-based operations which are essential for leveraging AI effectively.
“Utilities need to leave the old ways of doing things behind,” says Brown. “If your digital core is outdated and your data isn’t properly architected, you’re going to struggle to realize the value AI can bring. But with the right cloud infrastructure and a clear data strategy, utilities can catch up quickly”.
Responsible AI and data security
As utilities adopt AI, ensuring responsible use of customer data is paramount. AI models rely on vast amounts of data, and protecting that data is essential to maintaining customer trust and complying with regulations such as GDPR.
Teeney emphasizes the importance of responsible AI use: “We’ve built Kraken with security in mind. Every deployment is backed by thousands of automated tests, and we take customer data protection extremely seriously. We safeguard data and we ensure compliance with laws and regulations like GDPR and CCPA”.
Conclusion: AI is the future of utilities
The usage of AI is no longer a distant possibility for the energy utility industry—it’s happening now. From enhancing grid visibility and management to improving customer interactions and unlocking new revenue streams, AI is enabling utilities to become more efficient, proactive, and customer-focused.
As Buren aptly put it, “We’re building a brain for the utility industry, and it’s changing the game. AI is not about replacing humans; it’s about empowering them to serve customers better and make smarter, faster decisions”.
The future of energy utilities lies in AI, and those who embrace it will not only transform their operations but also set the standard for customer service and innovation across the industry.