OVERVIEW
Artificial intelligence (AI) is rapidly transforming industries across the global economy, and the electricity sector is no exception. Utilities and grid technology providers are constantly pushing the boundaries and finding new ways to apply AI to modernize grid operations, improve reliability, and enhance customer engagement in ways that were not previously possible.
Starting in Q3 2024, the GridWise Alliance brought together utilities, technology providers, national laboratories, and other electricity sector stakeholders to examine how artificial intelligence is being applied across the power sector. This effort included an AI Roundtable in June 2024, AI Working Group sessions throughout 2025, and industry discussions during the 2025 gridCONNEXT conference.
Insights from these discussions helped identify emerging applications of AI across grid operations and enterprise functions and informed the development of a framework that organizes AI use cases across the industry. The paper highlights how these technologies are improving reliability, increasing efficiency, reducing costs, and enhancing operational agility, while also outlining key challenges and recommendations for responsible deployment across the electricity sector.
AI USE CASE CATEGORIES
The GridWise Alliance identified eight functional areas where artificial intelligence is beginning to deliver measurable value across utility operations.
- Asset Management and Maintenance – Predictive maintenance, vegetation management, and asset registry validation.
- Reliability, Risk Management, and Safety – Identifying operational risks related to extreme weather, wildfire, equipment failures, and cybersecurity.
- Grid Planning – Load forecasting, power flow analysis, and generator interconnection studies.
- Grid Operations – Real-time situational awareness and improved dispatch decisions.
- Customer Engagement – AI-powered chatbots and predictive analytics to improve communication and customer service.
- Regulatory Assistance – Monitoring regulatory developments and streamlining compliance reporting and filings.
- Workforce Training and Employee Productivity – Knowledge transfer and AI-assisted workforce training and decision support.
- Business Processes – Data analysis, IT–OT integration, and administrative workflow support.
BENEFITS OF AI FOR ELECTRIC UTILITIES
Across these functional areas, AI technologies are already delivering a range of operational and economic benefits for electric utilities, including:
- Improved reliability through predictive maintenance and enhanced monitoring of grid conditions
- Cost savings through optimized asset management and operational efficiency
- Enhanced sustainability through improved renewable integration and demand-side management
- Improved customer engagement through proactive communication and personalized services
- Greater operational agility through faster analysis and improved decision-making
Together, these capabilities highlight the growing role AI can play in helping utilities operate a more resilient, efficient, and responsive electric grid.
KEY RECOMMENDATIONS
While AI technologies offer significant potential for improving grid operations and enterprise functions, scaling their adoption across the electricity sector will require coordinated efforts among utilities, technology providers, and policymakers.
- Industry collaboration to establish AI governance frameworks and share best practices
- Standardization efforts to improve data interoperability across grid technologies
- Regulatory engagement to ensure AI deployment aligns with evolving policy frameworks
- Cybersecurity investments to protect operational and customer data
- Incentives that encourage utilities to adopt and scale AI solutions
- Development of open-source AI platforms
- Workforce training programs that equip employees to effectively use AI technologies