How AI can be an ally in the energy transition
The way Artificial Intelligence (AI) is portrayed in the news, social media, and movies is usually either a breakthrough technology that will revolutionize the world, or something we should be scared of.
In reality, it’s not so straightforward. On one hand, AI is transforming industries and offering new ways to solve complex problems; on the other, it raises questions around ethics, job displacement, and environmental cost. But as global issues like climate change and resource scarcity continue to worsen, we must form a new relationship with this technology – one where AI becomes a critical ally in the energy transition.
At the beginning, AI had a bit of a reputation problem. Blockbusters like "The Terminator" and "The Matrix" painted it as a futuristic threat - machines gaining consciousness, turning rogue, and taking over humanity. These storylines may seem far-fetched, but they left a lasting impression. Today, the way the public sees and understands AI remains uncertain. A 2024 Ipsos report found that while half of respondents feel nervous about AI, only the same proportion actually know what products and services rely on it.
People’s views on AI have been changing over time, and it looks like it’ll keep going. Advances in machine learning, natural language processing, and robotics have proven AI's potential to solve complex problems. From healthcare to finance, AI is being integrated into various sectors, demonstrating its value and reliability. And while perceptions of AI are slowly changing, the tech developments are advancing significantly. One of these areas is energy efficiency. For instance, last year we launched an AI-enabled feature in our Wiser app that can optimize energy usage in homes and help consumers cut costs whilst reducing their carbon footprint.
AI’s potential in environmental monitoring is among its most exciting applications. Beyond improving ESG reporting scores, it also plays a crucial role in advancing sustainability targets on both national and global scales. For example:
of global carbon emissions is from production and consumption of energy
of CO2 emissions reducible with with existing technologies
of annual CO2 emissions saved
With 80% of global carbon emissions coming from the production and consumption of energy, decarbonizing energy is the key to net zero – and while AI can help with this, we can make progress today. We could reduce 70% of CO2 emissions and save 10-15Gt CO2 annually – and this is where we move into the era of Electricity 4.0. And so, while we are excited about how AI can turbo charge some of these changes, we must also focus on accelerating electrification and digitalization at the same time.
A great example of where AI is amping up progress is happening in Boston. Our R&D hub puts the energy-as-a-service model to the test. Through a microgrid set up with nearly 1400 solar modules AI has been used to optimize performance. The site has significant EV charging demands which have been met through the solar and storage assets being managed with EcoStruxure Microgrid Advisor. The site really showcases how microgrids enhance reliability while boosting the use of clean energy.
AI doesn’t just have a role to play with microgrids, it can make a difference at home too. As more people start producing their own energy at home using things like home batteries and EV chargers, AI can help optimize energy usage at home as well.
AI is moving fast, and it’s being shaped by constant innovation and the pressure to tackle big global problems. As we continue to deepen our understanding and improve the technology, the conversation around AI will start to shift permanently. People won’t just talk about the risks, they will start looking at how AI can actually help make things more efficient and optimize systems on a larger scale.
For businesses, AI can be a real game-changer when reaching sustainability goals. It gives real-time insights, uncovers waste, and helps manage resources in a smarter way. In a world that’s becoming more digital and electric, AI will play a key role in building a more sustainable future.
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