Modernization is the name of the game in the energy and utilities sector. Energy and utility providers are looking to modernize their infrastructure to increase efficiency, lower costs and integrate renewable energy sources.
That’s a tall order for organizations with aging infrastructure spread over large geographic areas. They need to find ways to optimize their operations while ensuring the reliable delivery of services. They are also facing increasing demand and consumers who expect responsive customer service.
Generative AI can help energy and utility providers address these challenges. AI-powered tools can monitor infrastructure and analyze data in real time to make management more efficient. Predictive maintenance solutions can spot potential problems before they occur, helping to reduce the risk of disruptions. AI tools can also analyze historical data to identify ways to save energy, reduce waste and utilize renewable energy effectively.
Like organizations across a wide range of industry sectors, energy and utility providers can use gen AI to enhance customer service. AI-powered virtual assistants are available around the clock and can resolve many customer inquiries more efficiently than human agents. Human customer service representatives have more time to focus on complex issues.
Integrating AI tools with legacy systems can be a daunting challenge, and incomplete or inaccurate data can lead to bad decisions. To be successful, AI initiatives require a clear strategy and careful planning with well-defined goals.
Gen AI Use Cases in Energy and Utilities
Preventing and Detecting Outages
Real-time monitoring enables energy and utility providers to detect potential problems and perform preventive maintenance to reduce costs and the risk of unplanned outages. Preventive maintenance also extends the life of assets and enhances the efficiency and reliability of infrastructure. When outages do occur, AI-powered tools can detect them quickly so that crews can respond rapidly to restore service. AI can also analyze outage-related data to help energy and utility providers identify the root cause and prevent future incidents.
Enhancing Customer Service
Customer service hasn’t always been a priority in the energy and utilities sector. However, providers are starting to recognize its value in addressing competition from non-utility energy options. AI-powered virtual assistants can slash hold times while reducing costs and relieving the burden on contact centers. Energy and utility organizations also have vast amounts of data about their customers, enabling them to develop highly personalized communications that enhance customer satisfaction and engagement.
Enabling Targeted Marketing
Traditionally, energy and utility providers have used mass marketing such as billboards and radio and TV ads. However, they now have detailed data on how their customers consume their services down to the appliance level. This enables them to develop campaigns that target customers who can benefit most from energy-saving programs. By maximizing participation in these programs, energy and utility providers can meet their sustainability objectives while helping their customers save money.
Gen AI Challenges in Energy and Utilities
The energy and utilities sector is among the most risk adverse due to regulatory requirements and the need to ensure the reliable delivery of services. Gen AI adoption introduces risks and uncertainties if models and the data used to train them aren’t accurate. Energy and utility providers must thoroughly test AI systems and ensure that their data is complete and up to date. Humans should also maintain oversight of AI-driven processes.
Gen AI can introduce and perpetuate bias, and energy and utility providers must ensure the fairness, transparency and accountability of AI systems when using them to support decision-making and targeted marketing campaigns. They must also protect the privacy and security of sensitive customer data.
How Cerium Can Help
Cerium understands the needs and challenges of organizations in the energy and utilities sector and can help them develop a strategic approach to gen AI adoption. Our team will help energy and utility providers identify use cases and understand the risks involved so they can minimize any potential disruption to their operations. We will then help them aggregate and cleanse data, implement the rate AI tools, and ensure the privacy and security of sensitive information.
