Nearly half of experienced energy professionals plan to integrate artificial intelligence (AI)-powered applications into their operations in the coming year, according to a new report from DNV.
DNV says its latest Energy Industry Insights special report, “Leading a data-driven transition,” is based on the 14th annual survey of nearly 1,300 senior professionals, as well as in-depth interviews with industry leaders and experts.
The survey highlights in particular the crucial role of digitalization in the transformation of the energy sector, with its impacts on production, transmission, distribution and consumption. AI-based technologies, such as smart grids, predictive maintenance and real-time data analysis, are already making their mark in the energy sector and promise to further revolutionize it in the years to come.
Nearly 50% of the 1,300 senior professionals who responded to DNV’s survey said they plan to integrate AI-powered applications into their operations in the coming year.
The three most impactful data-driven applications are process optimization, system and database integration, and operations automation. However, 50-60% of respondents also report major or massive impacts from a wide range of other data-driven innovations, from predictive maintenance to supply chain management.
The value of applications is often diluted by system and database integration issues. Paula Doyle, chief digital officer at Aker BP, quoted by DNV, explains that “companies typically have a lot of legacy systems where data is locked into the application” and explains that there is a need to “liberate and contextualize data from industrial systems to make it accessible to humans and machines (for) better and faster decisions.”
According to DNV, AI and advanced data analytics are key to this transformation. The report estimates that by 2050, AI will reduce clean energy production costs by $1.3 trillion and grid equipment costs by $188 billion. Overall, electricity system costs will be reduced by 6 to 13 percent. According to DNV, AI is now an indispensable part of energy systems, with 47 percent of respondents saying their organization will use AI-powered applications in its operations in the coming year.
Despite the progress made, significant challenges remain, DNV said. Resistance to change is a major obstacle, compounded by the need to balance security with agility in an industry where failure is not an option. Doyle highlighted the challenge of becoming more data-driven, emphasizing the need for a specialized workforce to effectively track and manage data. As DNV put it, she noted: “Effective automation of data delivery is becoming extremely important, and this is where AI can play a key role.”
