Five ways AI is revolutionising utilities

AI is transforming utility companies, making grids more sustainable, efficient and resilient. Thanks to its ability to process large volumes of data and generate predictive models, artificial intelligence is redefining digital ecosystems and business processes across the sector.

Begoña López, Data Account Manager for Utilities at Ayesa, explains: ‘We’re seeing companies leveraging new sources of data, such as drones, smart meters, sensors and computer vision. This helps them optimise their processes and make more informed decisions in different areas’.

One way the sector is harnessing the power of AI is through smart grids. These allow the entire life cycle of energy to be optimised, from generation through to usage, meaning greater efficiency. This is achieved through advanced algorithms, which enable renewable energy to be effectively integrated and the distribution of electricity optimised. Smart grids also allow companies to predict demand and adjust generation in real time, thereby minimising waste and improving the reliability of the system.

In terms of grid operations and maintenance, we’re seeing more and more companies implementing optimisation models. These allow them to detect anomalies before they lead to faults, manage assets and inventories, efficiently plan maintenance (including assigning work orders based on predictive analytics), predict risk to make informed decisions when investing, improve the safety of workers, and effectively manage operational risks.

AI is also transforming metering, billing and collections. One way it is doing this is by allowing companies to detect anomalies in usage, ensuring accurate and transparent billing. It also means more effective back-office processes, enabling them to better detect non-technical losses and fraud, and ultimately increase revenue.

Another area AI is revolutionising is customer service. Solutions that incorporate artificial intelligence allow companies to significantly improve how they interact with customers as well as ensure their needs are met. For example, we’re now seeing AI being used to offer multichannel support through virtual assistants and chatbots; provide customers with personalised recommendations based on predictive analysis of their behaviour; develop proactive solutions for managing complaints; advise customers on their energy usage; optimise marketing strategies; and design new products.

Perhaps the area where we’re seeing the most innovation though is generative AI. This allows companies to ‘super-automate’ their processes and vastly increase their capacity. Although it’s still not widely used, a number of pilot projects and concept tests are under way.

‘In order to successfully implement GenAI, it’s essential companies have a strategic plan that takes into account its impact, feasibility and return on investment (ROI), as well as risks relating to privacy, bias, intellectual property and security’, concludes López.