Utilities use AI for power demand forecasting but face deployment challenges

Utility Dive reported that the utility industry is increasingly using artificial intelligence to manage rising electricity demand, focusing on applications such as demand forecasting and maintenance prioritization.

Despite these advances, the sector faces challenges because AI outputs can be uneven or difficult to audit, which is problematic in a highly regulated industry with strict safety and reliability standards.

Executives say that while AI supports decision-making, the industry is far from allowing AI systems, like large language models, to directly control physical infrastructure.

Rick Lesley, an energy sector expert, noted that most AI deployments assist with tasks like forecasting, anomaly detection, and workflow automation, but consistent performance at scale remains limited.

Additionally, the Federal Energy Regulatory Commission highlighted cybersecurity concerns related to the growing use of advanced AI tools, warning about potential access control risks.

A review by Guardrail Technologies found that while about 70% of energy and utility companies recognize AI as a cybersecurity risk, only a minority have formal processes to manage these risks.