AI in playing a critical role in addressing unprecedented demand and safety challenges for utilities, according to US energy technology company Itron.

Its 2024 Resourcefulness Insight Report found that 86% of utilities identify artificial intelligence (AI) and machine learning (ML) as crucial for addressing operational challenges amid their energy transition.

The report, “Exploring AI for Utilities: The Promise and Challenges of Artificial Intelligence” (na.itron.com/resourcefulness-report), summarises key findings from 600 utility executives from the USA, Canada, France, UK, India and Australia about the importance of AI and ML in addressing industry challenges.

“Our research provides an in-depth look at how utilities are grappling with historic growth in electricity demand while keeping safety front and centre,” said Marina Donovan, vice president at Itron. “As utilities continue their journey towards a more connected and intelligent grid, the integration of AI and ML becomes both a necessity and a strategic advantage to meeting today’s challenges.”

As demand for electricity continues to grow – which utility executives indicate is driven by data centres for cloud computing and AI (40%), new construction (32%) and sustainability initiatives such as solar and electric vehicles (31%) – utilities are facing unprecedented difficulties in maintaining reliable and resilient grid operations.

Published in conjunction with Itron Inspire 2024 (na.itron.com/itron-inspire), the company’s customer-focused event, the report reveals that utilities identify AI and ML as crucial technologies for addressing high priority operational challenges.

“The greatest challenge and opportunity facing the utility sector is figuring out how to double or even triple the size of the grid over the next two decades while maintaining affordability, improving reliability and decreasing its environmental impact,” said Michael Webber from the University of Texas at Austin. “The findings from Itron’s Resourcefulness Insight Report highlight the importance of strategic, forward-thinking investments in technology and infrastructure to ensure an accessible, safe and sustainable energy future for all.”

The report found that utilities’ top technology investment priorities over the next five years to address these problems include distributed energy resource management systems or DERMS (26%), sensors (23%), consumer engagement tools (22%), and low-voltage distribution network management (20%). It found that 82% of utilities were in the process of adopting AI and ML.

Enhancing safety is the top use case for AI and ML (49%), followed by cyber-threat detection (34%) and predictive maintenance (33%).

Barriers to developing and deploying AI and ML include a lack of expertise (43%), high investment and integration costs (41%), data infrastructure, governance, standardisation and scalability (40%), and risks of unproven technology (39%).

The report highlights the importance of AI and ML, particularly through the adoption and enhancement of grid edge intelligence, which provides insight and control across the distribution network. Utility executives identify many benefits associated with AI, ML and grid edge intelligence. All countries surveyed agreed that the top area where AI and ML could have the biggest impact was detecting and managing potentially dangerous situations.

“As utilities improve intelligence at the grid edge through the adoption of AI and ML, they are optimising operations and paving the way for a more sustainable and resilient future,” said Donovan. “Our findings reveal that the age of AI for utilities is here, and the strategic deployment of these technologies is crucial for enhancing safety, improving consumer engagement and achieving long-term sustainability goals. The commitment of utilities to harness the power of AI and ML will be a driving force in shaping the next generation of smart utility management.”

To download a full copy of the Itron Resourcefulness Insight Report as well as the research, visit www.itron.com/resourcefulness.

The report consolidates perceptions of utility executives on topics relating to AI, ML and edge intelligence. A total of 600 online surveys were completed in June 2024 by utility executives in Australia, Canada, France, India, UK and USA. Respondents were mid-level managers or higher who have input on decision making for electric, gas and water utilities. Their areas of responsibility ranged from selling products, working in operations, planning, customer service and various administrative services.

Liberty Lake, Washington-based Itron (www.itron.com) is a specialist in energy, water, smart city, IIoT and intelligent infrastructure services.