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Nearly half of senior energy professionals plan to integrate Artificial Intelligence (AI)-driven applications into their operations in the coming year, according to a new report from DNV. The Norwegian consultancy has conducted an annual survey of nearly 1,300 senior professionals, alongside in-depth interviews with industry leaders and experts.
By 2050, AI will support a USD 1.3 trillion decrease in clean energy generation costs and reduce grid equipment costs by USD 188 billion, DNV underlined in its latest report, titled Energy Industry Insights, adding that overall, power system costs will be reduced by 6% to 13%.
According to DNV, the survey highlights digitalization’s crucial role in transforming the energy sector. AI-driven technologies like smart grids, predictive maintenance, and real-time data analytics are already taking hold in the energy sector and promise to revolutionize it further in the coming years, it noted.
AI is now an indispensable building block of energy systems
AI is now an indispensable building block of energy systems, with 47% of respondents saying their organization will use AI-driven applications in their operations in the year ahead — a figure climbing to as high as 69% for what DNV describes as “Digital Leaders.”
While 28% of respondents claim their organizations are excelling in digitalization and show greater optimism about achieving revenue, profit, and decarbonization goals, 37% report the opposite.
DNV has called the former “Digital Leaders,” and the latter “Digital Laggards.”
Leaders are significantly ahead in using digital technologies for decarbonization and the energy transition
Leaders are significantly ahead in using digital technologies for decarbonization and the energy transition, with 68% having quality data and 80% already benefiting from digital technologies, compared to 21% and 33% of Laggards respectively, DNV noted.
On emerging technologies in general — like AI (27%) and digital twins (34%) — around one-third of Leaders say they are live or advanced, compared to just single-digit percentages for Laggards. In fact, most Laggards report being in the early development stages (planning or piloting) of all the key technologies DNV asked about.
What are the most impactful data-driven applications?
The top three most impactful data-driven applications for Leaders are optimizing processes, integrating systems and databases, and automating operations. However, 50% to 60% of Leaders also report major or massive impacts from a wide range of other data-driven innovations, from predictive maintenance to supply chain management.
According to DNV, resistance to change is a major barrier for both Leaders and Laggards, compounded by the need to balance safety and agility in an industry where failure is not an option.
As the energy sector navigates the twin challenges of digitalization and decarbonization, the ability to adapt and innovate will define success, said Lucy Craig, Director of Growth, Innovation and Digitalization, Energy Systems at DNV.
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