The Electric Grid’s Growing Adoption of AI

There is a coming decades-long transformation in electricity infrastructure, and it's not renewable energy. Yes, that's happening too, but we're talking about the software systems and artificial intelligence that will control, maintain, and optimize an increasingly complex electrical grid. Productivity tools will allow power companies to shift skilled labor away from mundane tasks. Faster and better inspections will allow companies to maintain higher run times and mitigate tail risk. Localized assets like the standby generator in your home and smart thermostats will work in tandem with advanced modeling to reduce blackouts during times of peak demand and reduced supply. And behind it all will be numerous artificial intelligence platforms.

Indeed, the adoption of AI has already started. In October, the Electric Power Research Institute (EPRI) told a House subcommittee that it has been involved in over 70 AI projects in applications ranging from predictive maintenance to grid management and streamlining workflows.^₍₁₎ EPRI believes AI will increasingly contribute to the safety and reliability of energy generation, transportation, and consumption. However, it is also concerned with new challenges, including cybersecurity/privacy risk and even AI's own massive electricity consumption.

It's no secret that the challenges facing America's electric infrastructure are significant: Demand is increasing (EVs, HVAC demands, smart devices, etc.), infrastructure is aging, and inflation is driving costs higher. Furthermore, as renewable generation gains market share, these issues only become magnified (reliability concerns, transmission line upgrades, etc).

While utilities are notoriously slow to adopt anything new, early indications are that power companies are actually beginning to embrace AI. It seems that infrastructure challenges are so great that AI technology may be the only viable solution.

This is such a significant topic that it was featured in a Barron's Magazine cover story in January of 2024.^₍₂₎

Specific to the scale of the buildout required, some of the figures cited were jaw dropping: