GenAI in the energy sector is a hot topic. Since our presentation at Oracle Energy and Water Customer Edge on AI and Analytics, we’ve spoken with many professionals in the utilities industry who are as eager as we are to see what efficiencies GenAI can bring to the energy industry. We’ve put together this article to share some of our findings from the field, as well as help you discover new and innovative ways in which GenAI can improve efficiencies in your utility.
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Executives Eager to Explore GenAI in the Energy Sector
According to a KPMG report (June 2023), executives in the energy industry are eager to explore GenAI. Executives in the energy, natural resources, and chemicals industries (ENRC) envision GenAI “automating routine tasks and decision-making processes, predicting when and where their plants and pipelines will need maintenance, and helping with exploration and development of natural resources.”
With the emphasis on conservation and renewable energy, resources that can make ENRC companies more efficient are of great interest. According to the KPMG report, “Given widespread concerns about climate and the environment—and the role that energy, natural resources, and chemicals play in both—ENRC executives are more likely than most to see environmental, regulatory, and political factors influencing the need for the technology at their companies.”
Additional data taken from industry surveys also show continuing interest:
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- 65% indicate that GenAI represents a significant opportunity to drive efficiency.
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- 41% are actively seeking to collaborate with external partners.
rSTAR Technologies is already making significant contributions to GenAI use cases in the energy and utilities industry. Pilots tested for Fortune-level companies indicate that GenAI can, for example, meet or exceed customer service expectations through natural, conversational responses. Please see our GenAI services page if you’re researching partners to collaborate with for your next project.
GenAI in the Energy Sector: Sample Use Cases
In previous articles, we’ve shared potential use cases for the energy industry. ENRC executives may also wish to consider the following sample GenAI use cases. Each holds enormous potential to improve efficiencies and drive innovation, and rSTAR has the necessary industry expertise and technical resources to help you move from consideration to implementation.
Please see our previous articles on GenAI use cases for energy and utilities:
We also have a series of expert articles on GenAI from rSTAR Forbes Council members Danny Asnani and Vivek Ahuja. Read, share, and bookmark them as part of your GenAI exploration:
Predictive Maintenance Powered by GenAI
According to the KPMG report, 73% of industry executives saw GenAI improving their predictive maintenance and asset optimization efforts.
Predictive maintenance powered by GenAI can help energy organizations that manage complex operations and large asset bases to forecast equipment maintenance needs. Using GenAI algorithms to analyze vast datasets from equipment sensors, ENRC companies can better predict failures, minimizing downtime and repair costs. A typical example of this is a GenAI utilizing past data to predict when plants and pipelines require maintenance and indicate that proactive maintenance steps should be taken immediately.
Grid Optimization and Other Innovative Energy Solutions
GenAI facilitates the creation of several novel energy solutions like smart grids and advanced energy storage systems. For instance, by leveraging GenAI, grid operators can simulate and optimize numerous design and operation scenarios, enhancing the speed and efficiency of managing energy flow across the grid.
This GenAI solution can be applied in renewable energy systems to optimize the placement and operation of wind turbines, maximizing energy capture based on weather patterns. It can also be used in demand forecasting to accurately forecast energy demands, aiding grid management and reducing wastage.
Customer Support and CX Enhancement
Energy and utility companies can automate repetitive customer support activities like sending reminders, customer billing, responding to quick customer queries, etc., with GenAI. For example, GenAI can automatically respond to a query about ‘high bills’ by analyzing historical energy consumption and other metrics to provide a comprehensive response. This relieves human support staff of repetitive, unproductive tasks, helps them refocus their output on more complicated customer support activities, and optimizes customer service productivity significantly.
Besides benefiting human agents, GenAI also improves customer engagement and experience when interacting with a company. Through natural language processing, this AI technology improves customer interaction by providing personalized and efficient service. For instance, GenAI can provide personalized energy-saving recommendations tailored to an individual’s consumption pattern.
Environmental Monitoring and Improve Resource Allocation
GenAI for environmental monitoring and management across their asset bases. They can also adopt the predictive analysis feature of GenAI to enhance resource allocation, supply chain optimization, and health and safety monitoring and management.
Challenges and Limitations of Adopting GenAI in the Energy Sector
Despite the numerous use cases and benefits, GenAI has faced challenges and limitations that have limited its adoption in the industry. It’s important to mention that most of these challenges are centered on people, culture, and understanding of technology. As an emerging technology solution, GenAI adoption requires substantial investment, a skilled workforce, significant data management capabilities, a strategic roadmap, and a solid governance framework.
Many companies have yet to adopt the solution because of several factors, including data availability, privacy and security issues, resistance to change within the company, and ethical concerns surrounding AI.
Additionally, regulatory frameworks are still being developed as the technology evolves. As a highly regulated industry, many organizations still need to be convinced to adopt the solution.
Furthermore, GenAI models have substantial computational power demands, and industry leaders are concerned about the environmental impact they can have.
Leverage GenAI to Future-Proof Your Utility
Adopting GenAI offers a future where a company’s energy systems are more intelligent, efficient, and responsive to changing customer needs, expectations, and market dynamics.
As we’re in the early stages of the technology’s adoption across industries, now is the best time to embrace the opportunities GenAI presents to remain on the cutting-edge of service, sustainability, and efficiency.
The journey might seem complex, but working with the right strategic partners is crucial to addressing the challenges, concerns, and limitations while exploring GenAI adoption and implementation. rSTAR Technologies is ready to assist.
