A significant shift is underway in the energy sector, with nearly half of senior energy professionals planning to integrate Artificial Intelligence (AI)-driven applications into their operations within the next year, according to a new report from DNV. The Norwegian consultancy’s annual survey, which included insights from nearly 1,300 senior professionals and in-depth interviews with industry leaders and experts, underscores the growing influence of AI in the energy industry.
AI’s Role in Reducing Costs and Transforming the Energy Sector
By 2050, AI is projected to play a crucial role in the energy sector, contributing to a USD 1.3 trillion reduction in clean energy generation costs and a USD 188 billion decrease in grid equipment costs. Overall, AI-driven innovations are expected to lower power system costs by 6% to 13%, according to DNV’s latest report, Energy Industry Insights. The report highlights digitalization as a key factor in the ongoing transformation of the energy sector, with technologies such as smart grids, predictive maintenance, and real-time data analytics already making significant inroads.
AI: An Indispensable Building Block
AI has become an indispensable building block in modern energy systems, with 47% of respondents indicating that their organizations will integrate AI-driven applications into their operations in the coming year. This figure rises to 69% among what DNV refers to as “Digital Leaders,” organizations that are ahead in the adoption of digital technologies.
While 28% of respondents report that their organizations excel in digitalization and show greater optimism about achieving revenue, profit, and decarbonization goals, a notable 37% report struggling in these areas. DNV has categorized the former group as “Digital Leaders,” and the latter as “Digital Laggards.”
Leaders vs. Laggards: A Digital Divide
The survey reveals a significant divide between Digital Leaders and Laggards in the use of digital technologies for decarbonization and the energy transition. 68% of Leaders report having quality data, and 80% are already benefiting from digital technologies, compared to 21% and 33% of Laggards, respectively.
When it comes to emerging technologies such as AI (27%) and digital twins (34%), approximately one-third of Leaders are either live or advanced in their deployment, while most Laggards remain in the early development stages—either planning or piloting these key technologies.
The Most Impactful Data-Driven Applications
For Digital Leaders, the most impactful data-driven applications include optimizing processes, integrating systems and databases, and automating operations. Additionally, 50% to 60% of Leaders report significant impacts from a wide range of other data-driven innovations, from predictive maintenance to supply chain management.
However, the survey also identifies a major barrier to digital transformation: resistance to change. Both Leaders and Laggards face challenges in balancing safety and agility in an industry where failure is not an option.
The Path Forward
As the energy sector grapples with the twin challenges of digitalization and decarbonization, the ability to adapt and innovate will be key to success. Lucy Craig, Director of Growth, Innovation, and Digitalization at DNV, emphasized that the energy sector’s future will be defined by its capacity to navigate these challenges and leverage digital technologies effectively.
The DNV report makes it clear that organizations that embrace AI and other digital technologies will be better positioned to lead in the energy transition, while those that lag may find it increasingly difficult to compete in a rapidly evolving landscape.
